A prepaid funeral contract is a legal agreement that allows a person to pay now for funeral services that will be needed sometime in the future. This contract may include the funeral, burial, cremation, and other related services. A prepaid funeral contract may be revocable or irrevocable. Irrevocable means the contract cannot be canceled. Only an irrevocable funeral contract is an exempt asset for Medicaid purposes.Medicaid does not pay for funerals, but it does have rules that allow you to set aside money for your own funeral, burial, or cremation without having that money "count" as part of your assets when Medicaid determines your eligibility for long-term care coverage. Medicaid allows you to put money aside, in a separate account, to pay for your funeral and burial expenses. Qualified funding vehicles, such as funeral insurance policies and trust accounts are allowed, provided they are irrevocable and non-refundable, and cannot ever be used for purposes other than funeral expenses. When the proper funding vehicles are used to prepay a funeral, the value of the prearranged funeral contract and the funding vehicle are excluded as a countable resource in determining SSI & Medicaid eligibility.
Medicaid regulations restrict an
applicant from transferring, giving away or assigning assets in order to become
eligible for benefits. Improperly transferred assets may result in
ineligibility.Properly allocated funds, however, are excluded from resources when Medicaid
eligibility is determined.
Prepaying
for a funeral has other benefits, including locking in prices, relieving the
burden of family members during a time of emotional stress, and ensuring that
your personal wishes are carried out according to your wishes.
To find out more about prepaid funerals, read the Prepaid Funeral FAQs on The Fairfax Elder Law Firm of Evan H.
Farr, CELA website. In addition, visit the website for more information about Medicaid
Asset Protection. Call 703-691-1888 to make an appointment for
a free consultation with Evan H. Farr, CELA to talk more about your specific
situation.
Pre Planning Funeral Services are the best ways to have people remember you as you want, not the way your family may think you wanted. Thanks!
ReplyDeletePre paid funeral plans would be effectively provided by the funeral directors.
ReplyDeleteIf you decide to take out a funeral plan, it is important to let your relatives/executors know, otherwise they may arrange and pay for a funeral using a different funeral director. Make sure you keep a record of the arrangements you have made and tell your family where you have put the paperwork. My friends Zach got his plans last year. Thanks.
ReplyDeleteThis article is so good for online Prepaid Funeral Plans.Funeral Pre Planning is nice.
ReplyDeleteThanks for posting this. My grandparents are making plans for their funerals right now. I think that it is a good idea to do this so that you can be prepared. My grandparents are trying to figure out the funding for these things and what medicaid covers.
ReplyDeleteGary Puntman | http://www.leanneodea.com.au
For some strange reason, I never considered there being a financial interest tie between funeral plans and Medicare assets. I guess I might have that consider that as I get older and start to make my final arrangements. In pre-funeral planning, how far in advance am I allowed to set aside Medicaid money?
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My wife and I are making our will and putting together our funeral stuff as well. We have been wondering if you could do a prepaid funeral so that it won't feel like it's coming out of pocket in the moment it happens. We really want each other or our children to have a stress-free funeral for us as much as possible. Thanks for the article. http://www.lawrybrothers.com
ReplyDeleteFunerals are expensive, so many are opting for prepaid funerals to avoid a financial burden that could be left with their family.
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It's helpful to know that Medicaid usually doesn't pay for funerals. That's something that my dad should know, because he was just wondering about this today. It will be good for him to know that it will allow him to set money aside for a pre-paid funeral to help ease the family's burden for paying for his service after he dies.
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I think everyone of us should think of prepaid funeral plan as soon as possible. Every one of us have the same ending in this world and we all know it. So I think buying or considering now a legal agreement to pay now for funeral services is a good decision to make.
ReplyDeleteThank you Evan for the great information! We at Metropolitan Funeral Service always love to learn about the benefits of pre-planning to better serve our clients.
ReplyDeleteWell said! With prepaid funerals you can be confidently knowing that the responsibility will fall to someone you trust. But, I think it’s best not to pre-pay, but to leave instructions about what you want so loved ones will be able to take care of it.
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ReplyDeleteMy mother just passed away and had an irrevocable funeral plan. Her funeral expenses were paid and left $6,000.00. She was on Medicaid and I'm wondering if the remaining funds have to be returned to the state. We live in Tennessee.
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