Planning ahead for the future can be both a financial and emotional relief. For families facing the challenges of long-term care costs, a prepaid funeral contract can serve as a practical tool that not only secures your wishes but may also help you qualify for Medicaid benefits.
Why Consider a Prepaid Funeral Contract?
Reduce countable assets – Medicaid has strict financial eligibility requirements. A prepaid funeral contract helps reduce assets, making it easier to qualify.
- Peace of mind for families – Arrangements are made in advance, ensuring your wishes are honored and relieving loved ones of difficult decisions.
- Lock in today’s prices – Funeral costs rise over time. Prepaying now protects your family from future inflation.
- Ease the burden on loved ones – With arrangements prepaid, family members are spared unexpected expenses and stress during an already difficult time.
What Funeral Costs Can Be Prepaid?
A prepaid (also called pre-need) funeral contract can include many essential services and items such as:
- Embalming and body restoration
- Funeral service room rental
- Casket, vault, or grave liner
- Cremation services
- Transportation of the deceased
- Required permits and death certificates
- Headstones or grave markers
These contracts can be tailored to reflect personal preferences and family traditions.
Medicaid Spend Down and Prepaid Funerals
Medicaid applicants are often required to reduce their assets to a qualifying level, commonly around $2,000, though this varies by state. Purchasing a prepaid funeral contract is one way to transform those assets into an exempt category that will not count against Medicaid eligibility.
It is important to note that to qualify for this exemption, the contract must be irrevocable. This means that once signed, it cannot be canceled or altered, ensuring the funds remain dedicated to funeral expenses.
Planning Ahead with Confidence
By using a prepaid funeral contract, families can both prepare for the future and safeguard Medicaid eligibility. It’s a thoughtful step that provides financial relief, emotional peace of mind, and ensures your final wishes are respected.
Fares J. Radel is here to guide you through every step of end-of-life planning. From helping you understand prepaid contracts to ensuring your family is cared for with dignity and compassion, our team is ready to provide the support you need.
Contact us today to learn more about prepaid funeral contracts and how they can help with Medicaid planning and peace of mind for your loved ones.
Post a comment