Making the decision to preplan is as basic as filling out a will, power of attorney or health care directive.
Prearranging your funeral puts you in control. It alleviates uncertainty of your wishes and helps to eliminate emotional burdens on your family and friends. When preplanning, many people choose to prefund their arrangements. This helps protect against the rising costs of the future.
Medical Assistance and Prepaid Funerals
If you are applying for Medical Assistance, the state of Minnesota allows you to pre-pay funeral arrangements. Properly structured, these prepaid funeral plans will not count toward your asset limit. Medical Assistance rules and regulations govern how we set up prepaid funeral and cremation accounts. The preferred funding vehicle is an insurance or annuity policy with an irrevocable assignment.
These plans are specifically designed for prepaid funerals and to protect assets. Regular life insurance and annuities generally are not regarded as protected assets and typically will not qualify as a properly structured funeral account.
This web page is for educational purposes only, and should not be relied upon or viewed as legal or tax advice. Please consult with a qualified advisor prior to taking any action that could affect your eligibility for Medical Assistance.