Why prearrange and prefund a funeral prior to SSI/Medicaid acceptance...
A 1982 amendment to the Social Security Act implemented a program whereby SSI/Medicaid eligible persons can set aside funds for their funeral and burial before their resources are exhausted by medical bills or their income declines to such a level that they need the cash assistance provided by the Supplemental Security Income (SSI) program.

Are you, or someone you know, applying for financial assistance under SSI/Medicaid?
If so, prepaid funeral arrangements offer the opportunity to completely pay for the funeral of your choice before assets are used up for medical care and before your assets are reduced to SSI/Medicaid eligibility levels.

Does Federal and State law permit the prepayment of funeral arrangements?
Yes. Federal and State law permit, through the use of qualified trust funds, the prepayment of funeral arrangements. When you apply for these programs, the funds set aside will be excluded as resources, which might otherwise delay eligibility.

Effective January 1, 1997, New York State Law mandates that all contracts for prefunded funerals executed by applicants for or recipients of Medicaid be Irrevocable.

How does Pre-Arranging assist you in ensuring acceptance?
When people elect to prepay their funeral arrangements, New York law requires the funeral director to deposit 100% of the money into a trust account. Each account is fully insured by the FDIC to the extent permitted by law.

By Pre-Arranging for SSI/Medicaid purposes you may select and completely prefund the funeral of your choice.

What is an Advantage of Pre-Paying?
Federal and State law provide that properly trusted assets intended for the payment of funeral expenses will not be considered a resource when SSI/Medicaid eligibility is determined. This allows Medicaid recipients to preserve assets that would normally be exhausted and in so doing ensure their funeral will be provided for.

Preparing for SSI/Medicaid eligibility isn't the only reason to prearrange a funeral...
Selecting and prefunding your burial expenses removes the burden from family members and loved ones at a difficult time. In addition, preplanning allows you to become informed of Veterans Administration, Social Security, fraternal, civic and other benefits that may be available to your family at the time of death.

SSI/Medicaid allows you to have the following assets...
1. Personal Items - clothing, furnishings, appliances, jewelry, equipment, car.
2. Cash (limited to $4,200 per individual or $5,400 per couple):
In hand; In bank; In trust (held by someone); Stocks or other "cashable" assets; Existing whole life insurance.
3. Prepaid Irrevocable Contract for Funeral Arrangements.