Purchasing Irrevocable Funeral Agreements, A Tool For Medicaid Planning
As part of long-term care planning, Medicaid recipients often purchase pre-need funeral agreements prior to applying for Medicaid. This enables an applicant to spend down his or her assets without Medicaid deeming the agreement to be an asset and without the eligibility issues associated with gifting. Until January 1, 1997, pre-need funeral agreements were revocable, i.e. the Medicaid applicant could cancel the agreement and be refunded his or her money.
