Institutionalized spouse is a SNF "Medicaid Pending" case. CS spouse owns whole life, IRA, and Mutual Funds policies and accounts. IS has been the designated beneficiary of these assets for several years. It is unclear if Medicaid pending status prohibits the CS from changing the beneficiary to another family member.
See an elder law attorney that specializes in Medicaid planning.
Or if one of the caregivers here is a CPA/Financial Planner or Elder Law Attorney they can weigh in with an answer.