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End of life expenses can be stressful to think about, but it’s important to make arrangements as early as possible. By doing so, you can take the financial burden off of your loved ones when it comes time for your or your spouse’s funeral. This guide will break down how Medicaid helps with funeral planning and funding. 

Medicaid & Funeral Prep: What Families Should Know

How Can You Pre-Pay for a Funeral?

While Medicaid does not cover funeral expenses, there are ways that pre-funding your funeral can help with your eligibility. To successfully pre-fund a funeral for you or your spouse, you will need to set up a contract with a funeral provider. This agreement is called a pre-paid funeral contract. By planning out your funeral and covering the expenses, your family will not have to make last-minute financial arrangements. 

What Are Revocable & Irrevocable Contracts?

funeral planningThe two main types of pre-paid contracts are revocable and irrevocable. A revocable contract allows you to cancel the plans and funding at any time. In these cases, you can receive your money back. However, an irrevocable contract does not have funding protection built in. The payment and arrangements cannot be canceled, but your family can make changes to the plans. You can also transfer the money to another funeral provider if you change your mind or relocate. 

How Will This Contract Affect Your Medicaid Eligibility?

When you put an irrevocable pre-paid contract in place, you may become eligible for Medicaid. This is because prepaid funerals under irrevocable contracts are exempt from Medicaid’s asset limits, so you can use them as a spend down. So, if you and your spouse earned too much to qualify for Medicaid, you may be able to divest some assets to quality, including those allocated for funeral expenses. Nursing home care is another common spend down option. By setting up this investment now and staying ahead of funeral planning, you can provide more financial stability for you and your family toward the end of your life. 

 

Planning and funding funeral services can be challenging for you and your loved ones. This is why the team at Eackles-Spencer & Norton Funeral Home is dedicated to assisting families in Charles Town, WV, with funeral details. These professionals take a compassionate approach to funeral planning, following your family’s wishes and offering pre-planning services. They also provide grief support to help you and your loved ones through this difficult time. To learn more about their services, visit them online today. You can also call (304) 724-6500. 

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