When may the preneed funeral trust be irrevocable?

• A. In order for the trustor to require his or her heirs to comply with the preneed
• B. In order for the trustor to become eligible for public social services
• C. In order for the trustor to become ineligible for public social service
• D. In order for the trustor to require his or her heirs to pay for the preneed

Answer: (B)

The key idea is that making a preneed funeral trust irrevocable is a tool to affect eligibility for public benefits. When the trust is irrevocable, the assets placed into it are treated as unavailable resources for the trustor. That means they aren’t counted toward the asset limit used to determine eligibility for public social services, so the trustor can qualify for those programs. The funds are dedicated to funeral expenses and can’t be accessed or redirected by the trustor or heirs, which is why this setup can help meet resource requirements for benefits. The other motives—forcing heirs to comply, making heirs pay, or aiming to become ineligible for benefits—don’t align with how these trusts affect eligibility.