Do you think you will one day need to qualify for Medicaid to help pay for long-term care costs? If so, you might be interested to learn how a prepaid burial plan can help you spend down your assets to help you qualify. To increase your eligibility, burial plans can be set up as irrevocable contracts, which make them exempt assets so that they are not counted when you apply for Medicaid. By doing this, you can preserve some of your assets for your family.
Most state Medicaid programs allow certain assets to be exempt from consideration, which means they are protected from being spent out of pocket on nursing home costs. Before spending down, it’s important to learn which assets are exempt, which are non-exempt, and how much you can preserve for your family.
With a burial plan, you can preserve your assets in two ways: with burial funds (designates services provided by the funeral home) and with burial space items (designates merchandise and items associated with burial/cremation of the body). You can purchase burial funds for both yourself and a spouse. Burial funds refer to any funeral goods and services sold by the funeral home. With burial space items, you can purchase merchandise on behalf of yourself, a spouse, and any immediate family members, including their spouses. This is one of the few ways you can legally set aside some of your assets for your children.
For specific information about your state’s Medicaid regulations, click here, select your state, and scroll down to “State Medical Assistance Office.” Feel free to speak to our prearrangement specialist or licensed funeral director to make sure that your contract meets all state requirements for Medicaid spend-down.