Which of the following best describes the reason to make a preneed trust irrevocable in the context of public social services eligibility?

• A. To require heirs to comply with the preneed
• B. To become eligible for public social services
• C. To become ineligible for public social services
• D. To require heirs to pay for the preneed

Answer: (B)

The main idea is how public social services determine eligibility by counting assets. When funds are placed into an irrevocable preneed trust for burial, those assets are no longer available to the individual and are generally treated as exempt resources for eligibility purposes. Because the money isn’t countable toward the asset limit, the person can qualify for public benefits like Medi-Cal or other assistance. The irrevocable and burial-specific nature is essential—if the trust could be accessed or revoked, it wouldn’t be exempt. So this approach is used to become eligible for public social services. It’s not about forcing heirs to do something, nor about making the person ineligible, nor about heirs paying for the preneed.