Irrevocable prepaid funeral contract

If you need to qualify for Medicaid coverage for long term care, you may be trying to think of smart ways to spend down your assets. Burial plans can be set up as exempt assets so that they are not counted when applying for Medicaid coverage. This way, you are able to preserve some assets that your family will need one day. Medicaid is a state and federally funded health insurance program serving low income families and individuals and those in critical need for medical care. Medicaid covers over

Prior to a discussion of how Irrevocable Funeral Trusts I. Trusts , also called Irrevocable Funeral Expense Trusts IFET , can be used to help one qualify for Medicaid, it is helpful to understand exactly what defines an irrevocable funeral trust. A trust is a legal agreement in which an individual called the Trustmaker or Grantor sets aside a certain amount of money for a specific purpose or person. In this case, the purpose of the trust is for funeral and burial costs.

Paying for a funeral is one of the biggest expenditures that a person will encounter in their lifetime. When planning a funeral, the costs add up quickly, and while many are basic, there are others that people unnecessarily rack on as an emotional reaction to the death. When experiencing a loss, people often tend to overextend themselves financially, in order to achieve a sense of peace and finality. Some even feel that the amount of money that they expend on the funeral is indicative of their feelings for the deceased, sometimes causing them to spend more than they can afford.

A prepaid funeral contract is a legal agreement that says you will pay now for funeral services that will be needed in the future. You can pay with money, insurance, or an investment that you own. There are two kinds of prepaid funeral contracts: revocable and irrevocable. Irrevocable means you cannot cancel the contract, but you can transfer it to a different funeral home if you want to.