How To Pay for Funeral Arrangements with Medicaid

If you are covered by Medicaid, you are allowed to set money aside for future funeral expenses.

Establishing a trust

The money you set aside will be put into a trust that you establish. In all likelihood you’ll want to choose an irrevocable trust, which would protect the money you’ve set aside should you ever need Medicaid to cover long-term care costs.

If you are covered by Medicaid and you have a revocable trust, Medicaid has the right to seize the money in the trust in the event that you need Medicaid to cover your medical or long-term care costs and your other assets have been depleted.

If you are considering setting up a trust to use Medicaid to pay for future funeral expenses, you might consider talking with a trust and estate attorney to get advice on the best way to go about doing this. The funeral home you are working with might also have experience in setting up trusts for this purpose, and may be able to advise you.

Local rules

Medicaid rules regarding funeral allowances may vary from state to state, so if you are interested in using Medicaid to help pay for your funeral you should contact your state’s Medicaid department, local Medicaid office, or an attorney in your area for more information. In many cases, the trust will have to have existed for at least five years in order for the funds in the trust to qualify for funeral payment under Medicaid rules. It's best to talk to your local Medicaid office to learn what the rules in your state are.

Other ways to pre-pay for funeral arrangements

There are a number of other ways to pre-pay for funeral arrangements. The most common ways include:

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