With 93% of seniors opting not to purchase long-term care insurance, many older adults are at risk of having their estates devastated if and when the need for long-term care arises. Funding a funeral trust safeguards assets from nursing homes or Medicaid. This is an issue a majority of older people are worried about.
Funeral trusts are written for people up to 99 years old. The simple, one-page application requires no underwriting, and premium amounts range from $1,000 - $15,000. They are nursing home exempt and largely Medicaid exempt. They are even transportable, which means they can be used at any funeral home.
At the time of death, the funeral trust pays any funeral home that provides the services, meaning that you are free to relocate to any funeral home you choose later in life. Funeral Trusts also save you from the dreaded task of picking out a casket.
A funeral trust can be created with your personal financial advisor from the comfort of your own home.
Prepay Your Funeral
An easy way to protect your assets from Medicaid is to prepay your funeral. This can be done by purchasing an insurance policy specifically for your final expenses. If this policy is irrevocably assigned to a funeral provider or Trust, the funeral provider or Trust will hold these funds and pay the provider of funeral services for you. If you prepay your funeral in accordance with Medicaid rules, it is a lawful way to reduce your assets, a key part of making you eligible for Medicaid assistance. Prepaying your funeral will also spare grieving family members and friends some of the financial and emotional burdens that exist during such a difficult time.
Please contact us for your free consultation!
How Funeral Trusts Work