Pre Plan Funeral Trust: Plan and Prepay Your Funeral Now
A pre plan funeral trust lets you decide your funeral wishes now and set aside the money to pay for them. Your family gets a plan to follow and a bill that is already covered. When the trust is irrevocable, Medicaid does not count that money, up to your state's limit. This page explains how a prepaid funeral trust works, how it compares to a funeral home plan, and how to get started.
What Is a Pre Plan Funeral Trust?
A pre plan funeral trust combines two things. You plan your funeral, and you prepay it by placing money in a trust.
You may also hear it called a prepaid funeral trust or a pre need funeral trust. They mean the same thing. The money stays in the trust until it is needed, then pays for the funeral you chose.
With the trusts I offer, the trust is irrevocable and portable. You cannot cash it out, and your plan moves with you if you change states.
Why Families Pre Plan a Funeral
Your family does not make hard choices in the worst week of their lives.
Your wishes are written down, so no one has to guess.
The money is already set aside, so no one has to find it.
Brothers and sisters have less to argue about.
Savings are protected from a nursing home spend down.
Pre Planning vs. Prepaying
Pre planning means writing down your wishes. Prepaying means setting aside the money. You can do one without the other, but each one alone leaves a gap.
A plan with no money still leaves your family with a bill. Money with no plan still leaves your family guessing. A pre plan funeral trust covers both.
Prepaid Funeral Trust vs. a Funeral Home Plan
Many funeral homes sell their own prepaid plans. Before you sign one, ask these questions:
Is it irrevocable?
A revocable plan still counts for Medicaid.
Is it portable?
A plan tied to one funeral home may not follow you if you move.
What happens to leftover money?
Get the answer in writing.
Who holds the money?
Know where your money sits until it is needed.
The trusts I offer are irrevocable and portable, and you can use them at any funeral home. Compare your options on the trust comparison page.
Your Funeral Pre Planning Checklist
Burial or cremation.
The funeral home you prefer.
The type of service, such as a viewing, funeral, or memorial.
A casket or urn.
A cemetery, burial plot, or place for ashes.
A headstone or marker.
Music, readings, and who you want to speak.
Details for your obituary.
Write these down and give a copy to the person who will handle your arrangements. We go over this list together on our call.
How Much Does a Funeral Cost?
Costs depend on where you live and what you choose. In Iowa, the average funeral cost used by Medicaid is $13,125.
$13,125
Iowa average funeral cost and trust limit
$15,000
Iowa limit with an itemized list of goods and services
$6,696
Nebraska funeral trust limit
We use a funeral home price list to set the right amount. The trust should match the cost of the funeral and stay within your state's limit. 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.
Pre Planning a Funeral for a Parent
Many of my clients are adult children planning for a mom or dad. You can start the conversation, gather the details, and book the first call. Your parent makes the choices and signs the paperwork, or in many states, the person named in their financial power of attorney can sign.
If your parent may need nursing home care, plan sooner. A pre plan funeral trust is one of the simplest ways to protect money during a Medicaid spend down.
How to Get Started
Pre plan funeral trusts are not sold online. Every plan starts with a call. We go over your wishes, price the funeral, check your state's limit, and complete the paperwork by phone or in person. See each step on how to buy a funeral trust.
Pre Plan Funeral Trust FAQs
What is a pre plan funeral trust?
A trust that holds money to pay for a funeral you plan ahead of time. It is also called a prepaid or pre need funeral trust.
Is a prepaid funeral trust better than a funeral home plan?
It depends on the plan. Ask whether it is irrevocable and portable. The trusts I offer are both.
Does a prepaid funeral trust count for Medicaid?
Not if it is irrevocable and within your state's limit. A revocable plan does count.
Can I change my funeral wishes later?
Your written wishes can be updated. Tell me if your plans change so we can review your trust amount.
Can I pre plan a funeral for my parent?
Yes. You can start the process. Your parent signs the paperwork, or in many states, the person named in their financial power of attorney.
Plan Your Funeral Trust Today
One call covers your wishes, what a funeral costs where you live, and how much a trust can protect. 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.