My mother is in a Georgia nursing home with asset limits. If she sells her car for its listed value, her bank balance will exceed the limit. Can the extra go into a burial account? The nursing home says yes, but online sources say no. Please help! Or do I need to hire an elder care lawyer?

Question

Christopher Boyd · Accepted Answer

I always recommend a Certified Elder Law Attorney. Most states allow the purchase of a pre-paid Irrevocable Funeral Trust, this will be Medicaid exempt. The Elder Law Attorney knows the options for Medicaid eligibility. If a person has whole life insurance, it is often possible to change the ownership of the policy to a family member before the Medicaid application to allow the family member to control the policy as not to lose the accumulated cash value and use that money for the future funeral. Proceeds from life insurance are generally tax free when going to a family member, but not when going to an estate, in most states. Again, consult the certified Elder Law Attorney.

Answered by Christopher Boyd on August 24, 2025

Agent Licensed in IN, KY, MI, OH, PA & TN

Answered by Christopher Boyd Medicare Insurance Agent

Richard Moreno · Answer

Yes, the money must go into a funeral or burial account and must be designated for that if it is in a separate bank account. A funeral trust is highly recommended and it must not be more than $10,000 In Georgia

Answered by Richard Moreno on August 23, 2025

Broker Licensed in TX, FL, LA, NM & OH

Answered by Richard Moreno Medicare Insurance Agent

Nick Mangini · Answer

I would hire an elder care attorney.  This is not something most Medicare agents truly understand unless they are well versed in Medicaid law.  Plus every state has different medicaid laws and rules.

Ron Cronwell · Answer

Burial contracts where the owner is the funeral home do not count into assets. 

Another option is to have her give the car to a underage grandchild, then the parent can dispose of the auto and use the funds to help out the mother as needed. Talk to a qualified tax professional to determine the actual process and implications.

Lynn C Shurtleff · Answer

I would advise contacting a local elder care lawyer or someone versed in your states Medicaid guidelines for Nursing Homes.  There should be a local Agency on Aging in your area that can help too.

Jaye Maxx Alexander II · Answer

Take the time to speak with an attorney . Do not listen to an individual at the nursing home it can cause your mother to lose her benefits.

Glenda Martin · Answer

In Georgia, Medicaid allows for certain exemptions, including burial funds and irrevocable pre-paid funeral contracts. Here's what you need to know  :
•  Burial Funds Exemption: Up to $1,500 in a designated burial fund is excluded from countable assets for Medicaid eligibility purposes. For married couples, each spouse can claim a $1,500 exclusion, allowing for a combined total of $3,000 to be excluded.
•  Irrevocable Pre-Paid Funeral Contracts: Georgia Medicaid allows for an exemption of up to $10,000 for irrevocable pre-paid funeral contracts or trusts. These contracts must be established with a funeral home or in an irrevocable trust, specifically earmarked for funeral and burial expenses.

To determine the best course of action for your mother's situation, consider the following  :
•  Exceeding Asset Limits: If your mother's bank balance exceeds the asset limit after selling her car, she may need to "spend down" the excess funds to meet the eligibility requirements.
•  Using Excess Funds for Burial Expenses: Your mother can use the excess funds to purchase an irrevocable pre-paid funeral contract or contribute to a burial fund, which may help reduce her countable assets.

Given the complexity of Medicaid rules and the specific circumstances of your mother's situation, it's highly recommended to consult with an elder care lawyer or a knowledgeable Medicaid planning attorney to ensure compliance with Georgia Medicaid regulations and to explore the best options for protecting your mother's assets .

Stephen Garrard · Answer

Yes, extra funds from selling the car can typically go into a Georgia Medicaid-approved burial account, but you must ensure it's a specific type of burial trust or prepaid funeral plan that meets state requirements to remain exempt from the Medicaid asset limit. Given the conflicting information and the specific nature of Georgia's rules, consulting a Georgia elder law attorney is the recommended next step to confirm the correct procedure and avoid jeopardizing her Medicaid eligibility.

Answered by Stephen Garrard on August 23, 2025

Agent Licensed in UT, AZ, CO & 9 other states

Answered by Stephen Garrard Medicare Insurance Agent

My mother is in a Georgia nursing home with asset limits. If she sells her car for its listed value, her bank balance will exceed the limit. Can the extra go into a burial account? The nursing home says yes, but online sources say no. Please help! Or do I need to hire an elder care lawyer?

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My mother is in a Georgia nursing home with asset limits. If she sells her car for its listed value, her bank balance will exceed the limit. Can the extra go into a burial account? The nursing home says yes, but online sources say no. Please help! Or do I need to hire an elder care lawyer?

Agents: Share Your Expertise

Seniors: Ask a Question of Your Own

Agent Locator

Medicare Agents HubA non-government resource website

Medicare Agents Hub
A non-government resource website