Certain advance arrangements for burial expenses are not counted as assets when determining Medicaid eligibility. These arrangements, often involving prepaid funeral contracts or designated burial funds, allow individuals to set aside resources specifically for their funeral and burial without jeopardizing their qualification for Medicaid benefits. For example, an individual may purchase an irrevocable funeral trust, ensuring the funds are used solely for funeral-related costs and are therefore protected from Medicaid consideration.
This provision provides peace of mind for individuals seeking to protect their assets while also planning for end-of-life expenses. It allows them to pre-arrange and pre-fund their funeral, alleviating the financial burden on their families. Historically, this policy recognizes the essential nature of funeral arrangements and seeks to balance individual autonomy with the need for public assistance programs. It provides a mechanism for individuals to plan for their own passing while meeting Medicaid’s eligibility criteria.
