Can I prepay for a funeral for my sister on Medicaid in nursing home with her income? We are from Michigan.

Generally, prepaid funerals are an allowed asset. Just check with the Medicaid people to be sure that this won't upset anything already in place. Normally, it's the person on Medicaid that has paid this, but I would think that you could do it for her. The main thing is to be sure it's all above board. A phone call should give you confidence that you are doing the right thing.
Take care,
Carol

I as her conservator paid for a prepay funeral out of her moneys that are in a special bank account till being disbursed to the nursing home. I was told by a social worker that this is what she tells all her patients to do that are terminal and I did not actually get permission to do this by medicaid or the nursing home.

Burial and funeral policies are usually an exempt "asset". They do need to be NCV -
no cash value - and irrevocable. I think they need to be under 10K in overall value but that could be a state to state different amount. The FH will know how to do this as this is really commonly done. Good luck & it's wonderful you are there 4 her

I am a Social Worker and work for a funeral home (FH). A local FH should be able to assist you. The answers above are correct in each State has their own rules and it should be both Irrevocable and have no cash value. If you have POA, the FH may ask for a copy to include in their records. Dignity memorial may help you find a FH in your area and ask to speak with a seasoned Family Service Counselor who should have experience with this. Blessings to you and your sister.