One of the most thoughtful ways you can help your family after your death is to pre-plan your final arrangements. Pre-planning doesn’t necessarily mean you have to prepay for your funeral, but it is also valuable to be financially prepared. Here are some ways you can get better prepared.
Get to Know the Medicaid Spend Down Program
Medicaid can be a helpful, but complicated program. Keep in mind, Medicaid is a needs-based program that has strict income requirements. It may be worthwhile to seek the advice of an attorney who specializes in elder law or that of an estate planner but here are some basics to help you get better financially prepared.
When qualifying for Medicaid your assets are inventoried and classified into three categories. They will be classified as countable, unavailable and exempt. To best preserve your assets it may be helpful to re-position some of your assets from countable to either unavailable or exempt.
Pre-paid funeral plans are generally exempt from Medicaid eligibility requirements as long as they meet certain criteria. The first is that they must be paid in full, and not part of a current installment plan. The other is that the pre-paid plan must be irrevocable. This means heirs or family cannot use the pre-paid funds for any other purpose other than final expenses.
When making pre-paid plans, be sure to include all of options you desire. At Fares J. Radel Funeral Homes, we’ll be glad to discuss these options with you to ensure they will meet the Medicaid guidelines. This may include options like limousines for family members, hearse, police escorts and even honorariums and fees for a choir, organist, or clergy.
Investigate the Advantages of an Irrevocable Trust
Setting up an irrevocable trust for your final expenses has some tax advantages while you are living and takes care of final expenses upon your death. Because it is irrevocable, neither you or your heirs have access to the funds.
Advantages of an irrevocable trust include:
- Peace of mind knowing final expenses are taken care of
- They are exempt from estate taxes
- Exempt from SSI/Medicaid spend down regulations
- Aren’t subject to a medical exam
- Provides a cushion from inflation
An estate planner and/or investment broker can assist you with details of setting up an irrevocable trust that best suits your needs.
How We Can Help
At Fares J. Radel Funeral Homes, our team of caring professionals are available to discuss your pre-planning needs. We can discuss your options and answer any questions you may have. We also have made available “A Guide to Planning Your Funeral”. This free, easy to read guide discusses the benefits of pre-planning, tips on how to financially prepare for a funeral, details to consider when pre-planning and how Fares J. Radel Funeral Homes and Crematory can assist you with your final arrangements. We invite you to download our free brochure today, and of course, we always welcome your questions at Fares J. Radel.
