Mom has pre paid the funeral home for her service ect. In the course of paying on it the funeral home was bought by another area funeral home.
She received a letter the other day explaining that the bank that was currently holding the trust at the time were closing their trust accounts. So while that was going on they were setting up a trust at another bank and putting payments into a CD at a third bank.
Apparently they were suppose to notify her that they were doing that. Now they are asking for permission to leave the money in the CD.
What we want to know is which would be the better choice, the CD or the trust account.
Mom dosent want me to be stuck having to pay for anything, I am not able to afford that.

Medicaid will not ask for the CD to be cashed in. They all you to prepay funeral expenses and that’s exactly what the CD account is.
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Reply to worriedinCali
JoAnn29 May 14, 2019
Worried, I just looked this up. The CD has to be set up thats its for funeral expenses.
My Moms trust was set up with a company that does funeral trusts thru our funeral home.

As said, do not put it into a CD. Medicaid will ask for it to be cashed in if she ever needs Medicaid for her care. I would talk to the new funeral home owners.
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Reply to JoAnn29

Your best place to ask this question is another funeral home. My mom set an account locally but it can be used anywhere because it is set up like an insurance policy. A CD is risky because Medicaid may look at it like an asset
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Reply to MACinCT

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