Question:
My sister passed away and my mother is in assisted living, spending down her assets for Medicaid. As my mother is the next of kin for her daughter, can she pay for the cremation funeral expenses of her daughter as a legitimate spend down and NOT incur any Medicaid spend down penalties?
Response:
I’m sorry to hear about your sister.
I can’t give you a definitive answer because it depends on how your state’s Medicaid agency will apply the rules. However, my thinking is that it depends whether your sister’s estate can afford to pay her funeral expenses. If so, then there’s no need for your mother or anyone else to step in. If, on the other hand, there are no assets in your sister’s estate, then I think it’s a legitimate expense by your mother and should pass muster with your state Medicaid office.
One approach would be for your mother to pay the cost and then if there’s push back from Medicaid for you and any other siblings to reimburse her.
