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

Mike Alexander · Answer

What she needs to do us sell her car to a relative for one dollar, then the relative can sell the car and not deposit this to her account
Make sure you change the title to a relative.
Or she can gift the car to a friend, relative or charity.

George Ibanez · Answer

I would recommend that you hire an elder care lawyer and they deal with it professionally since this is a very delicate subject and I am not an attorney and I cannot give you legal advice, however, there are lawyers that specialize in this type of situations.

Answered by George Ibanez on October 28, 2025

Broker Licensed in AR, AL, AZ & 40 other states

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Ann Sanfelippo · Answer

Yes—some or all of the proceeds from selling the car can usually be protected by designating them as burial funds, but only up to Georgia Medicaid’s burial exclusion limit. Georgia allows applicants in nursing homes to set aside money specifically for burial, and that amount is not counted toward Medicaid’s asset limit if properly documented and kept separate. However, the exclusion has a dollar cap (commonly around $10,000 for the applicant), and any amount over that cap remains a countable asset If the excess would push her over the limit, she may need to spend down on other approved items. Selling the car at fair market value is fine—Medicaid only penalizes transferring assets for less than fair value. If the amount is close to or above the limit, or you want help structuring it correctly, speaking with a Georgia elder-law attorney is a smart idea.

Answered by Ann Sanfelippo on February 12, 2026

Broker Licensed in FL, AL, AZ & 14 other states

Answered by Ann Sanfelippo Medicare Insurance Agent

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.

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.

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, CA, FL, LA, NM & OH

Answered by Richard Moreno Medicare Insurance Agent

Bubi Gorgevich · Answer

In order to distribute funds properly and retain the status, it needs to be reviewed by the financial professional or an attorney.
My advise is to contact one or another in order to do distribution of the funds correctly.

Steve 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 Steve Garrard on August 23, 2025

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

Answered by Steve Garrard Medicare Insurance Agent

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.

Nicholas Ryckert · Answer

Up to $10,000 of burial expenses can be excluded form the income calculation. There are several items outlined on the Georgia Medicaid website with specific details. You can use this link to find the details : https://pamms.dhs.ga.gov/dfcs/medicaid/2312/

Answered by Nicholas Ryckert on March 2, 2026

Broker Licensed in FL, AL, AZ & 16 other states

Answered by Nicholas Ryckert Medicare Insurance Agent

Marcie Barnes · Answer

This is not a question Medicare would handle.

I suggest consulting a financial professional on how to protect your mother's assets

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.

Marta Iris González · Answer

✅ 1. Burial Funds Can Be Used to Protect Some of the Sale Proceeds

Under Georgia long-term care Medicaid rules, certain assets set aside for burial are not counted toward the Medicaid asset limit — but there are limits you must follow:
	•	You can designate money specifically for burial expenses — either in a pre-paid irrevocable funeral contract or a designated burial account.
	•	Georgia allows up to $10,000 excluded per applicant for burial funds, including burial contracts, burial accounts, and certain life insurance face value.  ￼

So yes — the extra money from selling the car can go into a burial account if it is properly designated for burial expenses and kept separate from other funds.  ￼

⚠️ 2. But There Are Rules You Must Follow

To stay exempt from Medicaid’s asset test:
	•	The burial funds must be in a separate account or contract marked specifically for burial. They cannot be commingled with other money.  ￼
	•	The $10,000 limit is cumulative — that includes burial accounts plus life insurance face value and prepaid funeral contracts.  ￼
	•	Any money above the $10,000 burial exemption is still a countable asset and may affect eligibility.  ￼

If her sale proceeds would cause her total countable assets to exceed the Medicaid limit (typically $2,000 for a single applicant), then just placing the extra in a bank account — even if labeled “burial” — won’t automatically protect the excess unless it’s a qualified irrevocable funeral trust or contract up to the allowable amount.  ￼

📌 3. What Often Goes Wrong Online

Some older resources (especially SSI rules or outdated manuals) show much lower burial account limits (like $1,500). Those do not apply to Georgia’s current long-term care Medicaid rules, which follow the $10,000 exclusion.  ￼
That’s why online sources might sound contradictory — they’re often referring to different programs or old rules.

🧠 4. Should You Hire an Elder Law Attorney?

Yes — that is highly recommended. Medicaid planning, especially

Andrew Bartley · Answer

I'll be honest here she could invest the money elsewhere into a life insurance policy or something however I can't legally give advice on law I'd say definitely get a lawyer involved for this one

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 .

Brian Adelstein · Answer

Yes, the extra cash can go into a burial account, but you must structure it exactly right to avoid losing her Medicaid eligibility. It's best to find a specialist in that area.