Prepaying a Funeral and Medicaid
July 23rd, 2010
There are several ways you can prearrange for a funeral and still get Medicaid. How much money you can protect and for whom depends on which arrangement(s) you choose.
Effective June 1, 2010, the Irrevocable Funeral Contract Limit will decrease from $11,450 to $11,393. Remember that the irrevocable cap is reduced by any life insurance funded funeral already assigned to pay for the Medicaid applicant’s funeral.
Funds in an irrevocable prepaid funeral contract are unavailable and thus are not counted as assets. Also note that all monies certified irrevocable by the Department of Human Services are not refundable, but are 100% transferable to another funeral establishment upon request of the preneed owner or upon death, by next-of-kin.
If someone arranges for services and/or merchandise that exceeds the irrevocable limit, a separate contract (Burial Space Exclusion) can be drawn up and still allow a person to receive Medicaid benefits. The Burial Space Exclusion items are defined as those items dealing specifically with the burial space: burial plot; crypt; headstone, monument, or plaque; burial vault; burial clothes; opening/ closing of the grave; flowers for the grave. The person qualifying for Medicaid can also purchase burial space items for qualifying family members.
We can assist you with your Medicaid matters and help preserve as much of your assets as possible.
