Funeral Plans
Funeral Plans for Medicaid
Funeral plans, when properly structured, are a great way to spend down excess assets and help accelerate Medicaid eligibility. In most cases, to be exempt for Medicaid, the funeral plan has to be irrevocable and potentially under a certain dollar amount.
Funeral Expense Trusts
The Funeral Expense Trust is a quick and easy way to purchase a Medicaid-compliant funeral plan. This plan is a simple whole life product that is irrevocably assigned to a funeral trust controlled by the insurance company. After the owner's passing, the funds are available to use for expenses like funeral services and burial services within 48 hours.
Is There an Advantage to this Policy Compared to Typical Funeral Plans?
You or your loved can also purchase a pre-paid funeral directly from a local funeral home. These policies can also be Medicaid compliant, so long as they are established correctly. With a Funeral Expense Trust, you can rest assured the policy will be exempt for Medicaid purposes.
Another benefit to this policy is that it is portable. In other words, it can be used at any funeral home in any state, allowing more flexibility for where an end-of-life celebration or funeral service can occur.
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Explore More Medicaid Planning Topics
Medicaid
Planning
An Introduction to Medicaid
Medicaid Asset Requirements
