Monday, March 11, 2013

Prepaid Funeral Plans and Medicaid- What You Need to Know!



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.




11 comments:

  1. 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!

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  2. Pre paid funeral plans would be effectively provided by the funeral directors.

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  3. Thanks for providing a information about online recharge prepaid mobile recharge,best prepaid plan.Plenty of call tariff plans and Internet packs to their customer.

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  4. If 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.

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  5. This article is so good for online Prepaid Funeral Plans.Funeral Pre Planning is nice.

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  6. Thanks 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.
    Gary Puntman | http://www.leanneodea.com.au

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  7. 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?
    http://www.morrisnilsen.com/prearrangement/

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  8. 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

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  9. Funerals are expensive, so many are opting for prepaid funerals to avoid a financial burden that could be left with their family.
    Speaking of insurance, if you're in need of home insurance, car insurance, or life insurance, and you happen to live in Pepperell MA, I highly recommend Foster Insurance. They have a great team ready to help you with your insurance needs.

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  10. 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.

    http://www.fluehrfh.com/fh/additionallink/additionallink.cfm?page=2&fh_id=14176

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  11. 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.

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