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Creating Funeral Trust for 10 k. Balance to Attny fees, limited savings.How to report creation of same, to avoid compliance issues and keep eligibility?

If the $ has not been deposited yet, PLEASE PLS please wait to do this Dec 1st. This gives you/ POA a couple of weeks this month to come up with a plan 2 b acted on just as soon as the 12/1/24 deposit clears.
Why?
it’s because in order to be in compliance for LTC Medicaid they need to start each month and end each month within the income and asset limits for her State. What you / POA will do is find whatever she could benefit from that is total completely for LTC and have it in the wings, so to speak. So that burial policy is ok for how it is done as a preneed policy and under the State max allowed….. paperwork done to be able to pay maybe on 12/5 to FH then and check has plenty of time to clear both banking systems. That the over resourced $ amount from the settlement (assuming this is lump sum) all gets spent in such a way that at the end of Dec she is once again under the max.

id suggest that you turn the spending plan by her caseworker. My experience is that is you have something well defined to doAnd able to wrap it all within the l th, the caseworker will be ok with it and act will be oh so happy as it means less work for them in having to make your mom suspended & ineligible.

BUT if this isn’t a lump sum but it is paid as an annuitized type of payment, that $ added to whatever she currently gets from her other monthly income (SSA, other retirements) has to when all added together each month be under the income max for her State. If this is how the settlement is being done, her income cornices will have to be finagled in some way. If that’s what’s happening, post an update. It can be dealt with but requires more actions taken & caseworker input as well.

Lastly, if the settlement had the costs that Medicare paid for hospitalization, rehab, etc. included in the amount sued, MediCARE has to have those monies paid back to them. MediCARE has a “Secondary Payor Act” which requires this. Check with your tort attorney to make sure they did this. However, it is ultimately on you to have this done.
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AlvaDeer Nov 11, 2024
Igloo, you are so packed with info. I wish you spent 24/7 on this page!
I know you don't wish that, but I do!
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You created a funeral trust. I am assuming you did this with an attorney? Might that attorney not now guide you in the rules for your own state (which will be individual to that state).

There are many online articles about the pros and cons of creating funeral trusts. You might research through there a bit today.

Finally, the best way to get an answer to this is BEFORE you do the Trust and right from the horse's mouth (the one creating the funeral trust). In lieu of that you can call your local DSS offices to find out the answer to your question. Hope you will share it with us. We are all just a bunch of caregivers who learn from one another.

Best out to you.
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