Elder Law Attorney Uses Funeral Trust To Help Family
There was simply was two choices the family had to make:
1.) Do Nothing…spend mom's assets down to $2,000.00 and qualify her for Medicaid. We determined that it would take approximately 6 months to do that.
2.) Qualify mom for Medicaid immediately by funding a Funeral Trust for Mom at $15,000
And $10,000 for each for her (4) children who were now adults for burial spaces. This would zero out mom's assets making her eligible for Medicaid immediately.
This planning would allow mom to qualify for Medicaid immediately while funding mom's funeral trust and funding funeral trusts for her 4 children. Mom could now leave a legacy to her children while keeping the money in the family.
The Medicaid rules show that an institutionalized person in the nursing home may fund burial spaces for immediate family members without a 5 year Medicaid look-back. Also, a funeral trust can be used to fund these burial spaces. The only criteria to this planning is that you need a "Goods and Services agreement" to verify the amount being put into the Trust for Medicaid purposes.
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