One common reason why people are ineligible for Medicaid or SSI is if their assets are over the limit. Rather than give money away to make yourself eligible, it is better to find ways either to spend the money or convert it into an exempt form. One way to do this is through funeral arrangements.
For both Medicaid and SSI, certain types of funeral arrangements – including burial funds, pre-paid funeral agreements, and burial plots – are exempt from consideration as assets. In this way, an applicant can reduce their countable assets while also ensuring that their wishes about their funeral are respected.
This memo from Selfhelp explains how these plans work.
- After Life – A Funeral Planning Guide (lifeinsurancequote.net)
- Money Management Guide for Unexpected Elder Care (mint.com)
- Medicaid Misinformation – Clearing up eligibility myths.(wesselselderlaw.wordpress.com)