Question

Describe the two (2) types of prepaid funeral trust accounts authorized by statute, and if either may become irrevocable, give the circumstances as to how same can become irrevocable?

Answer 1

There are two types of prepaid funeral trust accounts: revocable and irrevocable. An irrevocable account can become irrevocable if certain conditions are met, such as receiving Medicaid benefits.

Step-by-step explanation:

There are two types of prepaid funeral trust accounts authorized by statute: revocable and irrevocable. A revocable prepaid funeral trust account allows the individual to make changes or cancel the account at any time. An irrevocable prepaid funeral trust account, on the other hand, cannot be changed or cancelled without specific circumstances.

An irrevocable prepaid funeral trust account can become irrevocable if certain conditions are met, such as if the individual receiving Medicaid benefits deposits funds into the account. Once the funds are deposited, they are considered irrevocable and cannot be withdrawn or cancelled without penalties or disqualification from Medicaid.