Father
- Deceased
Mother
- 84 years old
- will need to live out her days with assistance
- Nursing home is $8,000 per month
- Most likely will out live her $53,000 in assets
To get Medical Assistance, a person can only have $3,000 in assets.
The mother will be eligible for Medical Assistance in about 6 months.
Fully pay for Mother’s funeral
- Services
- Merchandise
- Cash Advance Items
$10,000 is placed in an irrevocable insurance trust
Correctly structured these insurance contracts can be considered “exempt assets” with regards to Medical Assistance eligibility.
Example
$53,000 assets
- $10,000 pre-paid funeral trust
- $43,000 = 5 months of nursing home costs
$3,000 of allowable assets remain
Fully pay for Mother’s funeral
- Services
- Merchandise
- Cash Advance Items
$10,000 is placed in an irrevocable insurance trust
Preserve assets for children
$8,000 is placed in an irrevocable insurance trust for each of the 2 children and their spouses.
Correctly structured these insurance contracts can be considered “exempt assets” with regards to Medical Assistance eligibility.
Example
$53,000 assets
- $10,000 pre-paid funeral trust
- $32,000 children and spouses BSI
- $11,000 = 1 months of nursing home costs
$3,000 of allowable assets remain
- Spouse
- Parents
- Adult or minor children and spouses
- Adult or minor step-children and spouses
- Adopted children and spouses
- Cemetery Plots
- Crypts and Niches
- Caskets
- Outer Burial Containers
- Headstones
- Urns
- Opening/Closing Fees
- Perpetual Care
Additional Information and Resources
- MN Department of Human Services
mn.gov/dhs | 651-431-2000 - Burial Fund Exclusion Information
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