Funeral Trust FAQ: Answers to Common Questions
Families ask me the same questions about funeral trusts and Medicaid. Here are clear answers in one place. If your question is not here, book a free call or call 402-769-2485.
Funeral Trust Basics
What is a funeral trust?
Money set aside in a trust to pay for your funeral. When you pass, the trust pays the funeral home.
What is the difference between a funeral trust and a burial trust?
The terms overlap. A burial trust often focuses on burial goods such as the casket, vault, and headstone. A funeral trust covers the full funeral. The trusts I offer can cover both.
How does the money in my trust stay safe?
With the trusts I offer, your money goes into a whole life insurance policy that the trust owns. It is held for your funeral and cannot be cashed out.
Can I use my funeral trust at any funeral home?
Yes. The trusts I offer are portable. You can use any funeral home, even if you move to another state.
What happens to money left over after the funeral?
With the trusts I offer, leftover money goes to your estate. If Medicaid paid for your care, your state may claim it through estate recovery.
Funeral Trusts and Medicaid
Does Medicaid count a funeral trust?
Not if it is irrevocable and within your state's limit. A revocable plan does count.
How much can I put in a funeral trust?
It depends on your state. Nebraska allows up to $6,696. Iowa allows $13,125, or up to $15,000 with an itemized list of goods and services. Most states allow $15,000 or less.
Can I buy a funeral trust during a Medicaid spend down?
Yes. It is one of the most common spend down purchases. Set it up before the Medicaid application is filed.
Is a funeral trust a gift under the five-year look-back?
No, as long as the amount matches the cost of the funeral. Money above that can be treated as a gift.
Does a living trust protect my parent's assets from Medicaid?
No. A traditional living trust is usually revocable, so Medicaid counts what is inside it.
Buying a Funeral Trust
Who can buy a funeral trust?
Anyone. There are no health questions, so everyone qualifies, even a parent who lives in a nursing home.
Can I buy a funeral trust online?
No. Every plan is set up by phone or in person with a licensed agent.
Can I set one up for my mom or dad?
Yes. You can start the process. Your parent signs, or in many states, the person named in their financial power of attorney.
Which states do you serve?
Every state except Michigan and New York. I meet in person in the Omaha and Council Bluffs area and work by phone everywhere else.
What should I have ready for the call?
The name, date of birth, and state of the person the trust is for, a rough total of savings, and a funeral home price list if you have one. You do not need everything to book.
Still Have Questions?
One call answers your questions with your real numbers. There is no cost and no obligation.
Funeral Trust Gal is part of the Aging Parent Resource Center.
Sara Guida is a licensed insurance agent, not an attorney, and does not represent any state Medicaid agency. Content on this site is general education, not legal or financial advice. Medicaid rules and funeral trust limits vary by state.