The CLC Pooled Trust is authorized to prepay for any funeral-related expenses during the lifetime of the trust beneficiary. However, once a beneficiary dies, trust funds cannot be used to pay any funeral expenses. All beneficiaries should consider a prepaid funeral plan, unless they have a family member or advocate to assume this responsibility. Trust beneficiaries who are eligible for Medicaid or Supplemental Security Income (SSI) are entitled to prefund their funeral expenses by setting up what is known as an "irrevocable trust". These trusts allow Medicaid and SSI recipients to set aside and designate funds for the sole purpose of paying their funeral and burial expenses. These funds, under state law, cannot be counted as a resource, so you do not have to worry about it affecting your SSI/Medicaid eligibility. Medicaid does not allow for trust funds to be used after a person passes away, so paying for a funeral after a person passes is not allowed. Many of our trust clients have used PrePlan to setup a prepaid funeral account.
What is a PrePlan?
PrePlan, which was established in 1988, is a funeral trust pre-funding program, backed by the New York State Funeral Directors Association, Inc. (NYSFDA), which is the nationally recognized leader in managing prepaid funeral and burial accounts. It currently administers over 80,000 of these consumer trust accounts for almost 600 funeral homes in New York State that offer its services to consumers. The trust fund program is professionally managed by a first-rate team of funeral directors and knowledgeable staff, with the advice and counsel of some of the best investment advisors in the country. The link below can help you to locate a funeral director in your area that works with PrePlan, or you can download the PrePlan pamphlet and call them directly.
NFDA Website: http://nfda.org/
Find a Funeral Director: https://webportal.nfda.org/Membership/MemberDirectorySearch.aspx