Funeral-Medicaid-Legacy Planning

Do all States Allow Funeral Trusts?

All states, but two, allow Irrevocable Funeral Trusts as a means to lower countable assets for Medicaid eligibility purposes. These states are Michigan and New York. While IFTs are not available for this purpose, Irrevocable Pre-Need Funeral Agreements (or Pre-Paid Funeral Contracts) are permissible.

Max IFT Amount by State

Max. Value of Irrevocable Funeral Trusts / Contracts for Medicaid Eligibility by State Per Spouse – Updated Mar. 2024
Alabama	$15,000 – requires Goods & Services Statement
Alaska	$1,500
Arizona	$9,000 – requires Goods & Services Statement
Arkansas	No limit – requires Goods & Services Statement
California	No limit
Colorado	No limit
Connecticut	$10,000
Delaware	$15,000 – requires Goods & Services Statement
Florida	No limit
Georgia	$10,000
Hawaii	No limit
Idaho	No limit
Illinois	$7,981 – for Irrevocable Prepaid Burial Contracts – requires Goods & Services Statement No Limit – for Prepaid Funeral Burial Contracts funded by the irrevocable assignment of life insurance – requires Goods & Services Statement
Indiana	No limit
Iowa	$13,125 – without Goods & Services statement No Limit – requires Goods & Services Statement
Kansas	$11,360 – requires Goods & Services Statement (eff. 7/1/23-6/30/24)
Kentucky	No Limit – requires Goods & Services Statement
Louisiana	$10,000 – requires Goods & Services Statement
Maine	$12,000
Maryland	No limit
Massachusetts	No limit – requires Goods & Services Statement
Michigan	N/A – A funeral trust must be purchased through a funeral home in order for it to be exempt.
Minnesota	No limit – requires Goods & Services Statement
Mississippi	No limit – requires Goods & Services Statement
Missouri	No Limit – requires Goods & Services Statement Note: Up to $9,999.99 is exempt. Funds above this amount may not be exempt.
Montana	$15,000
Nebraska	$6,346
Nevada	$15,000 – requires Goods & Services Statement
New Hampshire	No limit – requires Goods & Services Statement
New Jersey	No limit – requires Goods & Services Statement
New Mexico	No limit – requires Goods & Services Statement
New York	N/A
North Carolina	No limit – requires Goods & Services Statement
North Dakota	No limit except that it cannot exceed the amount needed to pay for a funeral
Ohio	No limit – requires Goods & Services Statement
Oklahoma	$10,000
Oregon	No limit
Pennsylvania	Limited to the average cost of a funeral in one’s area + 25% for extraordinary costs (approximate limit $12,271.88 – $27,782.50)
Rhode Island	$15,000
South Carolina	$15,000
South Dakota	No limit – requires Goods & Services Statement
Tennessee	No Limit – requires Goods & Services Statement Note: Up to $6,000 is exempt. Funds above this amount may not be exempt.
Texas	$15,000 – requires Goods & Services Statement
Utah	$7,000
Vermont	$10,000
Virginia	No limit – requires Goods & Services Statement
Washington	No limit except the amount must be reasonable for the anticipated costs
Washington, DC	No limit
West Virginia	No limit – requires Goods & Services Statement
Wisconsin	$4,500, unless funded with a life insurance policy and then there is no limit – requires Goods & Services Statement
Wyoming	$15,000 – requires Goods & Services Statement

The final expenses that Irrevocable Funeral Trusts can cover include:

Burial plot

Casket / Burial vault
Cemetery fees
Clergy fee
Clothing
Cremation
Death certificate
Dressing and casketing
Embalming
Funeral home usage
Headstones / Monuments
Hearse / Limousines
Makeup and hairstyling
Musicians for service
Printed Death Notices
Service charge of funeral director and staff
Urn

By Securing Irrevocable Funeral Trust what do you accomplish:

Protects you Immediately from Medicaid Spend Down Very Important!!!!!! (5 Year Look back 60 months)

Locking in the Costs at Today's Prices
Can alleviate stress between family members (Free Planning Guide)
Allows you to control the money and allocate accordingly to heirs don’t leave it up to (Probate)
Allows for married couples to control the act of “Survivorship”
Allows you to focus on Retirement and not the “What if Notion”
Allows for the Thrifty Individual to capitalize on Long term savings
Protects you from Higher Taxes and Inflation through the non-working years (Fixed Income)
The Trust is completely Portable/Funds Dispersed 24 hours/Excess Funds Left Medicaid Recovery Fund

Other Key Points of the Irrevocable Funeral Trust

Anyone will qualify ages 0-110

Term Options: 1-10years

Payment Options: Cash/Check/ACH Transfer/Credit Card

Can be done in person or virtual

Takes less than 1 hour to complete

Financial Services Offered: Funeral Planning, Legacy Planning, Retirement Planning

Estate Planning, Medicaid Planning, Educational Planning, Business Planning, Payroll Deductions

Employee Benefits, Charitable Planning, Mortgage Planning, Annual Reviews.

Financial Products Offered: Irrevocable Funeral Trusts, Life Insurance, Dental Insurance, Vision Insurance, Hearing Insurance, Accidental Insurance, Medicare Supplements, Trusts, Annuities, Cancer Insurance, Critical Illness Insurance, Hospital Indemnity, Long Term Care Insurance, Disability Insurance, Medical Insurance, Buy-Sell Agreements, Group Benefits, Identity Theft Protection, Legal Planning.

Funeral Planning

Have you ever had to pay for a funeral? If so how much did it cost? Did you know that the national average exceeds 8,000? Did you know that a funeral is the third largest single purchase for most people? Did you know that Social Security only covers $255 toward a funeral if you qualify? Did you know that VA will only pay up to $749 for Non-Service Related Deaths if you qualify? Did you know that your household income will be cut by as much as 1/3 with the death of your spouse? Did you know that 70% of those who die did not leave behind a will? Did you know that 85% of those who pass left zero knowledge or financial means of last wishes? Is there a way I could take care of my funeral today and lock in the Cost forever so my love ones would not have to bare that responsibility? Yes as an organization its two things we always recommend:

1) Plan in Advance

2) Fund in Advance

Legacy Planning

Are you concerned about your Kids or grand kids future? Do you want them to attend college? Would you like to leave them a nest egg for the world? Are you raising a special-needs child? Are your kids prepared financially for that day when your not there? Would you like to leave a charitable contribution to your church? Do you own a business? If so do you have a buy-sell agreement set in place? Do you have a succession plan? Do you have business partners? If so when do they plan to retire? What is their plan? Are you leaving the business to the kids? If so what are the percentages? What will happen to your employees? What if you loose some or all of them to rival competition? Do you have a non-compete agreement plan set in place? Are your kids competent to run the business? We understand that these questions are daunting.

Retirement Planning

Are you ready to retire? Do you think you will out live your money? Can you afford to retire? When should I apply for Social Security? How should you take your Pension? How should you invest during retirement? What should you to do about health insurance? What should you do about an illness that requires long term care insurance? Where do you want to live after you retire? How should you arrange your estate to save money on taxes? How will you pay for healthcare? How will you generate cash when you stop working Are you considering selling your home? Are you married? If so when does you spouse plans to retire? What are your plans when one of you pass away? Do you plan to live by yourself? Do you plan to move in with the kids? Do you plan to enter into nursing home? What is you life expectancy from the age you plan to retire? We understand that these questions are daunting.