Indiana Medicaid changes policy on funeral purchases
By Lindsay M.L. Koler
The Indiana Family and Social Services Administration (“FSSA”) has made significant changes limiting the exemption for the purchase of funerals for immediate family members. Previously, FSSA allowed the purchase of funeral trusts for an applicant’s children and their spouses, following FSSA v. Culley, where the Court of Appeals found that Mrs. Culley did not make a violative transfer when she purchased funerals (caskets and all) for her son and daughter and their spouses. However, FSSA recently amended their Policy Manual to only exempt the purchase of burial spaces, including the space and the marker, but not the casket and the cost of services. FSSA’s modification is contrary to Culley, which involved funeral trusts. Funeral trusts for spouses remain exempt under the new change.
This change was not completed through the administrative rule-making process and could be subject to a challenge. Therefore, this policy may change in the future, but for now, the policy is in effect and should be followed when completing Medicaid planning. If you have any questions or concerns, please contact Lindsay Koler at the Grunden Law Office to answer this or any other Medicaid planning questions.