Funerals Homes and Medicaid

Did you know that if you’re covered by Medicaid you can set aside money for services at funeral homes in Amboy, IL?  

The best way to make sure you use Medicaid to pay for funeral and cremation services properly and protect your money is to work with an estate attorney. Trust and estate attorneys know the ins and outs of Medicaid, insurance and trusts and can best advise you on how to proceed in your specific circumstances. Another reason to hire an attorney is because Medicaid and cremation expenses rules vary from state to state. You need an expert that is familiar with your state’s rules to best advise you. You can also get in touch with your state’s Medicaid department, local Medicaid office, or an attorney in your area for more information.  

The first step is to using Medicaid to pay for funeral and cremation expenses is to establish a trust. The trust should establish your chosen funeral home or cremation provider as a beneficiary to make sure that they receive the money upon your death. The best kind of trust you set up is an Irrevocable Trust, as this form protects the money you set aside just in case you need Medicaid to help cover any long-term care costs.  

Be wary of Revocable Trusts, as Medicaid set seize money from Revocable Trusts if you have already depleted your other assets and you need help paying for medical or long-term care costs.  

You also need to make sure that you establish your trust enough in advance as, in many states, Medicaid trusts need to have been in place for at least five years for the funds to be accessible. Your chosen funeral home or cremation provider with most likely have established protocols that they prefer you use when you create a trust to pay for future funeral and cremation expenses. Be sure to talk to your funeral home and your estate attorney to get a recommendation on the type of trust you should set up to pay for cremation service arrangements. 

There are other ways to prepay for funeral or cremation expenses beyond Medicaid and trusts, like funeral insurance. You can purchase an insurance policy that lists the funeral home or cremation provider as the beneficiary so, when you die, the funeral home with get the money from the insurance company to put towards your funeral.  

Again, your local funeral home will most likely have a preferred insurance provider. Some might even be able to sell you the insurance directly. Keep in mind, though, that most life insurance policies do not cover funeral or cremation expenses.  

Schilling Funeral Home & Cremation is here to help if you want to learn more about Medicaid, funeral homes and preplanning. We offer a range of Amboy, IL funeral home services with the experience and compassion necessary to help you. Get in touch with us today for more information on what we can do for you in your time of loss or preplanning.