Are you considering prepaying your funeral or the funeral of a loved one?  Medicaid will cover the cost of a very basic funeral for Medicaid recipients. However, many prefer a more desirable funeral that would exceed the cost that Medicaid will cover. Senior Planning Services recommends creating an irrevocable funeral trust prior to obtaining Medicaid.

In order to be eligible for Medicaid, one must spend down their funds until they reach the Medicaid asset limit. In NY State, the asset limit is $14,550 for a single person and $21,450 for a couple in which both spouses are getting onto Medicaid. (This is excluding any means of asset preservation that may have been taken). Prepaying a funeral is an exempt asset in the Medicaid spend-down process and will not impede eligibility. Medicaid applicants can prepay funerals for themselves, their spouse and in most counties for their children.

The Medicaid applicant may choose the funeral home and services of their choice. Services could include flowers, casket, transportation to and from the cemetery and any other services that their budget allows. When setting up the prepaid funeral contract for Medicaid purposes, it must be setup in an irrevocable trust fund. An Irrevocable burial/funeral trust, is a non-refundable purchase in which the funds may not be used or disbursed until the time of death. By NY State law, the prepaid funeral purchaser may select a different funeral home at any time.

For questions about Medicaid eligibility, contact Senior Planning Services toll free at 855.S.Planning (775-2664) or via email Consultations@senior-planning.com