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By Son Han-Ik, State Funeral Director
Photo Credit: Blessing Funeral Home
Contact: 844.766(SON).1004
The receipt of a $1,200 relief grant from the U.S. federal government has presented an unintended financial dilemma for many Medicaid recipients, especially those who have been residing in nursing homes for extended periods. This augment in finances—when combined with state-provided care allowances—has caused bank balances to swell to potentially problematic levels.
When these accumulated funds remain unused until death, the entire sum must be returned to the state. More critically, recipients may risk losing Medicaid eligibility, consequently jeopardizing access to nursing home facilities. However, there exists a viable solution: establishing a pre-need account for funeral expenses.
To initiate this process, recipients must enter into a funeral contract with a certified funeral director and prepare three essential documents required by the state, listed below. Subsequently, they must obtain approval from the Medicaid Director of their nursing home to allocate a portion of the remaining funds for funeral expenses. The approved funds are then deposited into a state-designated Prepaid Funeral Trust Fund via an Irrevocable Funeral Trust.
Once an account is opened in the recipient's name, these funds are recognized as partial payment for funeral costs upon death. This strategy also offers additional benefits, such as accrued interest and fixed funeral expenses matched to the contract’s date. Administered by the state, this mechanism is not only safer but more advantageous than private funeral insurance or savings plans available in the market.
For further assistance, individuals may contact Blessing Funeral Home.
