Prepaid burial expenses do not count as assets in the spend down process as other investments do. One can purchase cemetery property in advance of need as well as a gravemarker.
Funds for the funeral itself and the other necessary expenses can be placed into a trust account in a bank or into some type of life insurance product. Life insurance is often more advantageous since the growth on life insurance policies is tax free.
What happens if the family does not set aside funds for funerals in advance? Medicaid will not pay funeral expenses. The family has to come up with the money somehow. Family members may be forced to accept a form of disposition that is not consistent with their values or religious convictions.
THOSE WHO PLAN AHEAD CAN SAVE MONEY
There is an irony at work here. Medicaid will pay medical expenses and the nursing home expenses. Medicaid will not pay burial expenses. Yet, by prepaying funeral expenses with money that will otherwise go to the nursing home or for other qualified expenses, your family can avoid paying these expenses in the future.
So then, Arkansas has no state burial benefits. Counties are obligated to pay for the destitute and friendless. (Counties are not obligated to pay for those who have the funds but do not want to spend them.) Only one member of a couple will be eligible for Social Security’s meager $255.00.
National cemetery benefits are worth thousands of dollars to veteran families who desire burial and qualify for cemetery privileges. However, even with this benefit, the funeral can cost $3,000 to $5,000 for funeral home services and to purchase a casket. It makes sense, therefore, to supplement these benefits with additional funds.