Our funeral home offers two options for pre-funding funeral expenses: life insurance or a certificate of deposit.
Both of the funeral pre-funding options, if set up irrevocably, will be considered an “exempt asset” by the county (Minnesota law). This means that the funeral account or policy will not be included in a persons assets when the county looks at your assets if/when you are in a “spend down” situation with the county. The money in each of these funding options will always be there for the family to use for final expenses. Should the funds exceed funeral expenses, the overage returns to the estate of the deceased. The county may claim excess funds if on medical assistance.
Who may be eligible? There are several insurance plans available. we can help determine which option is best for your. General guidelines: Up to age 95 at time of application. Not diagnosed with a terminal condition.
What limits are there? (If on medical assistance) Fund up to $2000 of service charges, $1500 if already on assistance. Fund casket, vault and cemetery expenses. “Cash advance” items such as honorariums, flowers, lunch, obituaries are not considered exempt from assets for medical assistance.
What are the usual payment options? There are payment options including lump sum, three year and five year plans.
What are the advantages of this option? You can fully fund the funeral and there are policy options available with very few health requirements.
What are the tax considerations? Tax exempt.
CERTIFICATE OF DEPOSIT AT LOCAL BANK
Who may be eligible? Anyone, any age. No health requirement. We may use your bank or ours.
What limits are there? (If on medical assistance)Fund up to $2000 of service charges. Fund casket, vault & cemetery expenses. You may not fund “cash advance” items such as honorariums, flowers, lunch, obituaries, etc.
What are the usual payment options? Lump sum payment. Minimum amount will vary depending on each bank’s terms.
What are the advantages of this option? Good for those who prefer to use a local bank.
What are the tax considerations? Interest is taxable.