New York State Funeral Directors Association

New York Social Services Law, Section 209

New York State Social Services Law Section 209 and Section 366 mandate that all contracts for prefunded funerals established for applicants or recipients of Medicaid/SSI be IRREVOCABLE.

  • Applicants and recipients of Medicaid/SSI may establish an irrevocable trust fund (for an unlimited dollar amount) for the exclusive purpose of their or a family member’s funeral and burial.
  • Only a single irrevocable trust fund may be established for each beneficiary.
  • The funds in an irrevocable funeral account are not considered an asset during the spend-down process.
  • Individuals will have the opportunity to select the funeral firm, funeral director, and cemetery to be used, and may change their selection at any time. The irrevocable account(s) are completely portable, and may be transferred to another funeral home, even in another state.
  • Funds must be placed in an interest-bearing account within ten business days. The accumulated interest shall not be reported as “countable” income.
  • Any account overage remaining after the full payment of funeral services and merchandise must be forwarded to the county where the decedent resided and was receiving benefits.
  • All preneed agreements for accounts established by or for an applicant or recipient of Medicaid/SSI must contain a mandatory disclosure explaining the nature of the irrevocability of the contract and the issue of portability.