Assets count when it comes to qualifying for Medicaid as we discussed in another post, “How to Qualify for Medicaid Benefits by Planning Now.” However, some assets related to your funeral expenses are excluded, and prepaying them is an acceptable way to spend down your assets to qualify for Medicaid, or Title XIX.
Irrevocable Funeral Trust or Contract
You can prepay up to $10,000 for an irrevocable funeral trust, also called an irrevocable funeral contract. This covers basic service charges, funeral services, preparation of remains, vehicles, etc. Keep in mind that this type of contract cannot be canceled or cashed in. It can only be transferred to another licensed funeral home. Continue reading