How Prefunding a Funeral Can Help You Qualify for Medicaid
A family member or friend is seeking to qualify for Medicaid and must spend down their assets to meet the threshold for eligibility, but you know that this person will need to have some money set aside for a funeral when they die. This dilemma may seem like a catch-22: there need to be assets to pay for a funeral, but there cannot be assets to qualify for Medicaid. Fortunately, there are stipulations in the rules governing Medicaid eligibility that allow an individual to set aside money in a qualified irrevocable prepaid funeral account without those funds being counted as assets when determining whether the person is qualified for the program. If your family member or friend expects to receive SSI/Medicaid or General Assistance within the next six months, they are permitted to establish an account, without those funds jeopardizing eligibility. This allows individuals to plan and pay for a funeral before assets are spent down to Medicaid eligibility levels. When making prepaid funeral ...