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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.
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.
Federal and State law permit, through the use of qualified trust funds, the prepayment of funeral arrangements in a manner
such that, 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 contractsfor prefundedfunerals executed by applicants for
or recipients of Medicaid be Irrevocable.
When people prepay their funeral arrangements, New York law requires the funeral director to deposit 100% of the money into a trust account.
In 1988, the New York State Funeral Directors Association established the "PrePlan". Each account in the "PrePlan" is fully insured by the
FDIC to the extent permitted by law. Funds are placed in FDIC insured bank deposit account(s), certificates of deposit in a bank within
the State of New York and other investments permitted by law.
By using the PrePlan, for SSI/Medicaid purposes you may...
Select and completely prefund the funeral of your choice
If the New York PrePlan" did not exist, most funeral directors would have to deposit prepayments in individual trust accounts at
lower interest rates. By contrast, the "PrePlan" provides a safe, well managed trust for thousands of consumers providing a rate
of return that should meet the inflation price of the funeral, so that upon the death of the funeral recipient, there are funds
available to meet the future retail price for the same items of goods and services as selected.
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.
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.
Contact Walsh La Bella Funeral Home, Inc. today. We will be please to answer any questions you may have regarding "PrePlan"
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