Looking for guidance with Medicaid spend downs? Jackson, Lytle & Lewis Life Celebration Center can answer your questions and share the available options. Knowing your options helps you make better decisions. Over the next ten days we will share 1 tip/day for your Medicaid Planning. You can also call and make a no obligation appointment to review your options. 399-2811
Medicaid Planning Tip #1 The resources of a person looking to apply for Medicaid may be spent down to fund a preneed funeral for the applicant and the applicants spouse. The spouse is the only family member for whom the assets of the Medicaid applicant may be used to pre-fund funeral services.
Medicaid Tip#2 The resources of a person looking to apply for Medicaid benefits may be spent down to pre-fund the purchase of burial space items for immediate family members. Notice this applies to all immediate family members not just spouse.
Medicaid Tip#3 Burial space items include the grave, crypt space, mausoleum or marker, opeing and closing services and perpetual care services. These are the only preneed funeral goods and services that can be purchased for immediate family members (other than the spouse) using the resources of the Medicaid applicant. No other funeral goods and services may be pre-funded for immediate family members.
Medicaid Tip#4 There are more "immediate family members" than you may think. Immediate family members include the following relatives of a Medicaid applicant: parents, minor or adult children (including adopted and stepchildren), siblings (including adopted and stepsiblings), and spouses of all of those immediate family members.
Medicaid Tip #5 If a Medicaid applicant wishes to spend down excess funds by way of check or credit card to pre-pay funeral expenses it is the same process as any other preneed contract. If burial space items are purchased they can be included on the same contract.
Medicaid Tip #6 Whenever an existing insurance policy is assigned to the funeral home and it is anticipated that there will be excess insurance proceeds remaining after the Medicaid applicant's funeral is paid for, a funeral home needs to earmark excess insurance funds for the spouse's funeral and or for the burial space items for immediate family members.
Medicaid Tip #7 When a Medicaid applicant wishes to assign an existing policy to the funeral home to pre-fund funeral and burial purchases, the Preneed Medicaid Form is recommended over an Addendum to the Preneed Contract Form. This will help avoid questions and potential problems later.
Medicaid Tip #8 It is critical to execute the preneed contracts, including all purchases for the spouse's funeral and burial space items for the immediate family members, before the person applies for Medicaid benefits. After the Medicaid recipient dies, it is too late to use excess funds for prenned burial space purchases.
Medicaid Tip #9 When there are excess funds remaining that have not been earmarked for preneed burial space purchases, the excess funds may be returned to the surviving spouse instead of being paid to the Ohio attorney general. Normally, excess funds remaining after the funeral of a Medicaid recipient that have not been earmarked through a preneed funeral contract for a spouse or immediate family member must be returned to the Ohio attorney general. However, there is an exception if there is a surviving spouse. The Ohio attorney general will not make a claim for those funds until the Medicaid spouse dies. In addition there are several exceptions, such as a child under 21 or a child that is blind or disabled.
Medicaid Tip #10 If preneed contracts have not been previously entered to earmark excess funds and there is no surviving spouse or other applicable exceptions involving minor children or disabled children, then the excess funds must be returned to the Ohio attorney general.
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