Irrevocable Funeral Trust Planning
An irrevocable funeral trust sets money aside for funeral costs in a way Medicaid does not count as an asset. Dave Brandt helps families use one as part of a larger Medicaid and long-term care plan.
What Is an Irrevocable Funeral Trust?
A funeral trust is an account set up to pay for funeral and burial costs ahead of time. An irrevocable trust for funeral expenses cannot be canceled, and the money cannot be taken back for other uses. It stays set aside for the funeral.
That one feature is what makes it useful in Medicaid planning. Because the money is locked in, Medicaid generally does not count it as an asset. Your family pays for the funeral now, with money that would otherwise have to be spent down. Learn more about how Medicaid treats a funeral trust, including the look-back period.
Why Families Set Up a Funeral Trust
For most families, a funeral trust is one step in a larger plan. Dave makes sure it fits with the rest of your Medicaid plan before you set one up.
Medicaid does not count it
Money in an irrevocable funeral trust generally does not count toward the Medicaid asset limit.
Wishes are written down
Your parent decides the funeral plans now, so the family is not guessing later.
Less strain on the family
The funeral is paid for ahead of time, so the family is not making money decisions during a hard week.
Who Can Set Up an Irrevocable Funeral Trust?
The person the trust is for can set it up. When a parent can no longer handle it themselves, a family member with legal authority, such as a power of attorney, can often set it up for them.
Each state sets its own rules for funeral trusts, including how much can go into one. Funeral trusts are not offered in Michigan or New York.
How Dave Helps You Set Up a Funeral Trust
The trust should fit the rest of your family's plan, so Dave starts there.
- Talk with DaveTell Dave about your parent's situation and any Medicaid plans. The first conversation is at no charge.
- Plan the funeralYour family chooses the funeral home and the services your parent wants.
- Set up the trustDave helps set up the trust. He is a licensed insurance agent, and he tells you when a recommendation involves a product.
- Fit it into the planDave makes sure the trust works with your family's Medicaid and long-term care plan.
Irrevocable Funeral Trust Questions
What is an irrevocable funeral trust?
It is a trust that sets money aside to pay for funeral and burial costs. Once it is set up, it cannot be canceled and the money cannot be taken back for other uses.
Does Medicaid count an irrevocable funeral trust as an asset?
In general, no. Because the money is locked in for funeral costs, Medicaid does not count it toward the asset limit. State rules set how much can go into the trust, so Dave checks the rules where your loved one lives.
Can an irrevocable funeral trust be canceled?
No. That is what irrevocable means. The money stays set aside for funeral costs, which is why Medicaid does not count it.
Who can set up an irrevocable funeral trust?
The person the trust is for can set it up. When a parent can't handle it themselves, a family member with legal authority, such as a power of attorney, can often set it up for them. The rules vary by state.
Are funeral trusts available in every state?
No. Funeral trusts are not offered in Michigan or New York, and the rules differ in every other state.
Does Dave earn a commission on a funeral trust?
Yes. Dave is a licensed insurance agent, and when a funeral trust fits your plan, the insurance company pays him a commission. You will always know when a recommendation involves a product.
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Why Trust LifeCare Senior Advocates
Dave Brandt brings more than 25 years in long-term care and works for families, not facilities. LifeCare Senior Advocates is veteran-owned and based in Walnut, Iowa.
Dave Brandt is a licensed insurance agent. Funeral trusts are not offered in Michigan or New York. LifeCare Senior Advocates is not a law firm and does not provide legal or investment advice.
Plan the Funeral Now, Protect the Plan Later
Talk with Dave about whether a funeral trust fits your family's plan. Your first conversation is always at no charge.
Dave Brandt is a licensed insurance agent. LifeCare Senior Advocates is not a law firm and does not provide legal or investment advice.