It won’t be your life insurance, that often takes weeks before the money comes. It won’t be your money as that is frozen at death and all Powers of Attorney (POA’s) are instantly null and void at death as well.
Often a family member is called up on to pay those bills (they will be reimbursed later). Do your children have these funds available right now in their checkbook?
There is a special, interest bearing account you can move some of your savings into now, that will be available to pay the entire funeral cost at death – immediately – without waiting for a probate judge to release your money or a life insurance check to arrive in the mail. It is called an irrevocable burial trust account and it’s also exempt from the Medicaid spend-down as well if Long-Term Care ever becomes necessary.
The Long-Term Care problem is serious because Medicaid, which will pay for your care once you are completely “impoverished,” requires that you also cash in your life insurance or final expense policies before you become eligible. This irrevocable burial trust is an exemption to those Medicaid rules and solves the problem of relying on children to pay your final bill.
At The Long Term Care Guy we solve the financial problems of dealing with the high cost of Long-Term Care and this is just one of the ways we can help you. If you want to investigate other solutions to the high costs of Long-Term Care, call us at (920) 884-3030 or (800) 219-9203. We are based in Green Bay but work with financial planners and attorneys as well as families like yours all across Wisconsin.