Hey, I’m the power of attorney for a relative who’s about to move to a full-time care facility because of a chronic condition. I’m working on the asset spend-down for Medicaid eligibility and was thinking of purchasing a prepaid funeral plan for them. I found out that in Hawaii, up to $15,000 can be paid for such a plan or an irrevocable funeral trust. But the mortuary I contacted sent over an agreement, and I’m a bit worried about Section 8-B. It seems like it might let the contract be revoked, which would mess with the Medicaid eligibility rules. Is that right or am I misreading it?
I was in a similar situation with a relative. The thing with Section 8-B sounds like it’s just a ‘cooling off’ period. If your relative can cancel the plan within a certain time, they can get a refund, but after that, it should be irrevocable. That’s how it worked for us!
@Greer
Oh, that makes sense! I was worried too. The idea of being able to cancel would mess up Medicaid eligibility, but if it’s only a short window then that’s cool. Good to know!
@Greer
Yeah, it’s a bit confusing at first. I think the key is that once the 30-day period is over, it becomes irrevocable, so it should meet the Medicaid requirements. So, don’t stress too much.
Paris said:
@Greer
Yeah, it’s a bit confusing at first. I think the key is that once the 30-day period is over, it becomes irrevocable, so it should meet the Medicaid requirements. So, don’t stress too much.
Got it! Thanks for clearing that up. I wasn’t sure what the ‘cooling off period’ meant in this context. Appreciate it!
I’m also dealing with Medicaid spend-down, and I ran into the same issue. Section 8-B threw me off too, but it’s just there to allow the buyer to change their mind in the first few days. After that, it’s locked in and can’t be revoked.
@Toryn
Wait, so you’re saying I can cancel in the first 30 days? I thought it was locked in once I signed. Good to know!
@Toryn
Yeah, you can cancel and get a refund in that time. It’s just a safety net for the person buying the plan in case they change their mind. After that, it’s final!
I looked into this for my own family too. It’s definitely a bit tricky. The section you’re asking about sounds like it just gives a brief window for changes. After that, it’s locked in, and that’s how Medicaid likes it.
@Roux
Thanks for the info! I was confused if I could still make changes after the cooling off period, but now I get it. So once it’s past the 30 days, it’s all good with Medicaid?
@Roux
Exactly! Once you’re past that period, it’s an irrevocable trust, and it won’t affect Medicaid eligibility. So, you’re safe.
Definitely don’t stress too much about Section 8-B. It’s a temporary window to cancel, but once that’s up, the trust becomes irrevocable. That’s all you need for Medicaid. I’ve been through the process and this part is pretty standard.
@Haru
That’s a relief! I was unsure if the option to cancel would mess up everything. Glad to hear it’s pretty straightforward once you hit that 30-day mark.
I had the same concern. After reviewing the agreement, it looks like you’re right about Section 8-B, but once those initial 30 days are up, the trust can’t be revoked, which is what you want for Medicaid.
@Skyler
So if the cooling off period is over, I’m good to go? I was worried about making sure everything lines up for Medicaid eligibility.
@Skyler
Yep, that’s right! Just make sure that after the 30 days, everything’s set and it can’t be changed. Then it works for Medicaid eligibility.