Assigning Policy to Funeral Home
- Thread starter WGO
- Start date
- 290
A couple of carriers have their own form. I know UHL is one. But most funeral homes have a generic form on file. Their funeral director can call the company to find out for sure since he/she has to be in on the paperwork.
If the policy is already in force, no problem, but a few carriers frown on doing this upon initial application.
They probably want an irrevocable assignment to exempt the CV from medicaid. If it is a new policy then there will be no CV for a while and they do not need to assign it yet.
- 16,917
It's also different state by state. Assigning the ownership and beneficiary irrevocably to the funeral home will be the same as setting up a funeral trust. It has no look back and is day one exempt from counting as a resource for Medicaid. The down side to that is that any amount not used on the funeral or cemetery will have to go to the estate and Medicaid will get anything that is in the estate.
If your client is not yet on Medicaid there is really no reason to assign it to a funeral home. People want to do that a lot because they think that would lock the price in like a prepaid funeral but that is wrong information. The price is only guaranteed if they buy a prepaid contract THROUGH the funeral home and not all funeral homes even sell a price guaranteed contract.
If your client is not yet on Medicaid there is really no reason to assign it to a funeral home. People want to do that a lot because they think that would lock the price in like a prepaid funeral but that is wrong information. The price is only guaranteed if they buy a prepaid contract THROUGH the funeral home and not all funeral homes even sell a price guaranteed contract.
- 2,758
I had one do it because he really didn't trust anyone to spend the money to plant him.
- Thread starter
- #5
