Beaugard Funeral Home - River Edge, NJ

SSI / MEDICAID AND PREPAYING A FUNERAL

Resource Exclusion for SSI/Medicaid Eligibility

New Jersey allows anyone applying for SSI/Medicaid to set aside funds to prepay their funeral. These funds, which must be made irrevocable (non-refundable), offer SSI/Medicaid recipients the peace of mind - of knowing that, when their time comes, they will have the kind of funeral they desire and deserve and that their loved-ones will not have to deal with the financial concerns.

In order to reimburse the state of New Jersey a small portion of the money it spends each year on the SSI/Medicaid program, legislation has been enacted regarding irrevocable funeral trusts and insurance policies specifically purchased to fund a funeral.

This legislation says that, once all funeral expenses have been paid, any moneys remaining in:

irrevocable trust funds of SSI/Medicaid recipients opened on or after February 27, 2000
or in newly issued insurance policies purchased and irrevocably assigned on or after February 27, 2000*

must be sent to the state. This is a way SSI/Medicaid recipients pay the state back for the help they received, while still getting the funeral service and burial they selected. For more information, visit the New Jersey state’s website.

*Irrevocable trust funds opened or insurance policies purchased prior to
February 27, 2000 are not affected by this legislation.

CHOICES™ - Pre-need Programs of the NJSFDA

Back to Planning