Death isn’t usually a pleasant topic of conversation for families. However, planning for the future can help alleviate grief and financial burdens. If you’re interested in investing in a trust and securing Medicaid benefits, here’s some information you might find useful about burial trusts.

What Are Burial Trusts?

Essentially, burial trusts allow you to set aside money that can be used to cover funeral costs when the time comes. You usually work with a third-party insurance company or a funeral home to set up this type of trust, and each state has a limit on how much money you can set aside for this purpose. When the time comes, the insurance company enacts the policy and sends the money to the funeral home of your choice. If there is any left over, the remainder goes to the family or next of kin. For that reason, financial experts often encourage people to put the maximum amount allowed into the trust, since it is another way to pass assets onto family members.

How Can They Impact Medicaid?

Medicaid considers a few key factors when evaluating applicants, including monthly income and assets. If your assets are too high to qualify for Medicaid, paying into an irrevocable burial trust allows you to essentially pay them down, which can give you a better chance of getting approved for those benefits. In fact, the Connecticut Funeral Directors Association recommends pre-paying for a funeral plan before you apply for Title 19 Medicaid benefits to improve your chances of accessing assistance.

If you’re interested in learning more about burial trusts, the professionals at Porto Funeral Homes can help. They’ve been serving New Haven County, CT, for more than 75 years and pride themselves on walking families through the planning process. They offer an array of services to fit every family’s needs, including cremations and burials. If you’re interested in learning more or speaking with a funeral director, call (203) 467-3000 for East Haven or (203) 934-5000 for West Haven, and visit the company’s website.