Navigating long-term care and medical expenses can be overwhelming, particularly when a loved one is experiencing declining health. Many families turn to Medicaid for support, but understanding the program’s eligibility requirements can be just as complex.
Sequim Valley Funeral Chapel aims to guide families not only through end-of-life arrangements but also through informed decision-making that helps protect their future.
What is Medicaid?
Medicaid is a joint federal and state health insurance program designed to assist individuals with limited income and resources in accessing necessary medical care. However, to qualify, applicants must meet strict financial criteria. In Washington state – and many others – individuals whose non-exempt assets exceed the allowable limit are not eligible for benefits until those assets are reduced. This process is commonly known as “spending down.”
This requirement can be particularly challenging for families who have spent a lifetime saving, especially if a spouse or dependent still relies on those funds. Fortunately, strategic and legal methods are available to reduce countable assets while preserving a portion of those funds for loved ones.
Prepaying funeral expenses as a spend-down strategy
One effective method for spending down assets – while also providing peace of mind – is prepaying funeral expenses through an irrevocable funeral trust. This arrangement allows individuals to allocate funds specifically for funeral expenses, thereby removing them from countable assets in the eyes of Medicaid.
Here’s how it works:
- Funeral arrangements are selected and funded in advance.
- The funds are placed in a secure trust that cannot be accessed for any other purpose.
- Because the funds are considered “exempt” by Medicaid, they are not counted against eligibility.
Why this matters
Establishing an irrevocable funeral trust not only reduces assets in a compliant and meaningful way but also protects family members from the emotional and financial stress of making funeral arrangements during a difficult time. The individual’s wishes are clearly documented, expenses are covered and loved ones can focus on healing rather than logistics.
Support when it’s needed most
Sequim Valley Funeral Chapel believes that thoughtful planning provides peace of mind. Whether individuals are planning for themselves or assisting a loved one, the chapel’s compassionate team is available to help with every step. The staff understands Medicaid guidelines and can assist in setting up an irrevocable funeral trust that aligns with a family’s needs and values.
For more information or to schedule a no-obligation consultation, call 360-683-5242 or send a private message. Sequim Valley Funeral Chapel is honoured to be a trusted part of the community’s journey – today, tomorrow, and always.
