Funeral Trusts?

[Mr. Bill]

Anybody heard of this? How is it different than final expense? NOt subject to Medicaid look-back, is there a max on funding?

 

[Newby]

Anybody heard of this? How is it different than final expense? NOt subject to Medicaid look-back, is there a max on funding?

I've done them exclusively for 12-years. Good product. You need to associate with a good funeral home to make a good living at it.

Many states are maxing the funds at $10,000 if they are applying for Medicaid within 6-months of doing the funeral trust.

Some states will allow more BUT any excess MUST go to Medicaid...not to the family. This stops the abuse of overfunding the irrevocable trust and leaving money to beneficiaries upon death after taxpayers (you and me) have paid for their nursing home.

The good business in funeral planning is not the terminally ill or nursing home residents but the healthy 50-75 year olds who just want their funeral bought and paid for and guaranteed. In fact I bet most people who buy final expense would buy the funeral preplan instead IF they have the money.

Now I sell both. I give them a choice. In almost all cases, poor people buy final expense (pay for life-no inflation protection) and middle class and wealthy people buy the funeral plan (usually single-pay or 2-year pay with inflation protection)

Do a search on my old posts if you want to read more of my drivel...I mean insight.