What is the Medicaid Spend Down Process?

June 14, 2021

What is the Medicaid Spend Down Process?

two women are hugging each other while looking at a laptop .

Let’s be honest, planning for your final years isn’t something that anyone looks forward to. Yet, it is an inevitable part of life and planning for it will alleviate a lot of stress for you and your loved ones. One way to do this is to create an irrevocable trust that will allow you to set money aside for future funeral expenses.

What is Medicaid and What is its Relationship to Irrevocable Trusts?

Most of us might have an idea of what medicaid is: a type of financial assistance for individuals and families that qualify. Rules vary state by state. Here in Rhode Island, there are three types of Medicaid:

Institutional/ Nursing Home Medicaid, which has an income limit of $2,382/month in order to qualify.

Medicaid Waivers/ Home and Community-Based Services, which has an income limit of $2,382/month as well.

Regular Medicaid , which has an income limit of $1073/month.

Nursing homes cost on average between $7000 and $8000 a month, which can be extremely prohibitive for spouses or the child/children of the individual who needs to/would like to live in such a setting. Medicaid can be extremely helpful in helping to pay for this. While you might have an income over these limits, there are ways of “spending down” your money in order to qualify. One of these ways is creating an irrevocable trust.

an elderly woman is sitting in a wheelchair talking to a younger woman .

What is an irrevocable trust?

Just like the name suggests, an irrevocable is a non-changeable trust connected to your funeral home of choice, although this can usually be changed to another funeral home if you desire. Other changes can be made after it is created, however, it can be very difficult to do so.

The money put in to an irrevocable trust can only be used to cover funeral expenses, and is not counted as an asset when it come to qualifying for medicaid.

With an irrevocable trust, the cost of services is locked in and will not rise over time, so your family will not be hit with any unforeseen funeral expenses.

You can always connect with a Medicaid planner to help you see what you can do to qualify for medicaid. To find a medicaid planner, click here

For more information on Rhode Island Medicaid Eligibility, click here.

You can also, contact us here at Memorial Funeral Homes if you have an questions about funeral planning, irrevocable trusts or the medicaid spend down process.

Want to start planning now? Click here to start the process.

The post What is the Medicaid Spend Down Process? appeared first on Newport RI | Memorial Funeral Home.

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He's going to be five next month, so he's not old, but he's getting a little up there. Yeah, but he'll he'll wrestle and stuff. Just something. She's a little much for him. Sometimes he'll be like, all right, enough. I'm going to take a nap. But, uh, she's just completely in love with him. Did you know that she would be living with you? I wasn't sure how this whole thing was going to go when I first pushed it. Yeah, I kind of figured that a dog would live with me. I just I didn't want to get a puppy because a lot of people around here had puppies, and I just didn't have the time or energy to train a puppy. As much as I love puppies, I just wasn't sure about that. I was pretty sure she was going to come home with me. I wasn't sure how he [his other dog] was going to take it. They are very much like kids, you love them, but you also know when you have reached you limit of how many you can have. Two is is my limit too [laughs], I'm good with that. How did this whole process start? 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I'm a huge dog person, so that was incredible, and yeah, whenever I walk in in the morning, it's every staff member. They just light up, and come and pet Holly. And then the kids come in and do the same thing. It's just huge. The principal was telling me that it's a huge game changer just to have a dog in the school. Even the police station, whenever people see her, the morale just boosts when she's in the room. The last question is what does she like to do during the off time like on the weekends and and after hours? That's a good question and important question. So actually during school hours I give her between 20 and 30 minutes of fetch time outside. I take a long lunch so she can, you know, just be a dog. When we're at home, I actually live near a school in Westport. and there's a big field there. She likes to play fetch. We go to dog parks that she loves. When the weather gets warmer, she's a big swimmer, so I have to take her on some hikes around lakes. She loves the water. 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