Burial Trusts
Irrevocable Trusts
-As it pertains to New York State Law-
Irrevocable preneed trusts may only be established by SSI / Medicaid applicants or recipients. All other preneed trusts must be Revocable. Absolutely no refunds may be obtained from Irrevocable trusts, however, the trust may be transferred to a different funeral firm at any time prior to or after the death of the beneficiary.
There is no dollar limit on goods and services set aside in an Irrevocable trust and all funeral goods and services may be included.
Pre-existing revocable trusts for individuals who achieved Medicaid eligibility prior to January 1, 1997 are grandfathered and do not need to be changed.
Pre-existing Revocable trusts for individuals with Medicaid applications submitted or pending on or after January 1, 1997 are not grandfathered and must be converted to Irrevocable trusts.
Any overages in Irrevocable trusts after the performance of the funeral must be remitted to the local county indigent burial fund.
Funeral services and merchandise may be upgraded at the time of death.
Additional deposits may be made to Irrevocable trusts at any time.
Individuals may retain a combined face value of $1,500.00 or less in life insurance in addition to an Irrevocable burial trust.
Life insurance cannot be used in conjunction with Irrevocable trusts.