What is a Funeral Expense Trust?
And Why Do You Want One?
A funeral trust is a special account set up to pay for your funeral and burial expenses in advance. When planning for Medicaid in Ohio, a funeral trust can help protect your assets, because the money you put into an approved funeral trust (usually up to $15,000) doesn’t count toward your Medicaid asset limit.
Here’s how it works in the Medicaid context:
- You set up the trust and fund it with money just for funeral expenses.
- The money is managed by a funeral home or financial institution.
- As long as it meets Medicaid rules, Medicaid considers that money “exempt”—meaning it’s not counted when reviewing your assets for eligibility.
- Upon your passing, the funds are used to pay for your funeral, burial, or cremation expenses.
Why is this helpful?
Without a funeral trust, that money would have to be spent down or could push you over the Medicaid asset limit, delaying your eligibility. With a funeral trust, you can get Medicaid coverage faster and be confident your end-of-life wishes will be covered, reducing stress for your loved ones.
Want a compassionate, customized plan? Reach out today for help setting up an Ohio Medicaid-compliant funeral trust as part of your Medicaid planning.
