Can I keep a small burial fund?

Can I keep a small burial fund?

Short answer: Yes. Under the rules most states use, up to $1,500 set aside for burial expenses can be excluded, in addition to burial spaces and irrevocable funeral plans.

Figures change periodically. Double-check current amounts before relying on them.

Under SSI-based rules most states follow:

  • Burial fund. Up to $1,500 set aside for the person’s burial expenses (and up to $1,500 for a spouse) can be excluded, if the money is clearly designated for burial, for example a separate bank account labeled for that purpose. The $1,500 is reduced by the face value of certain life insurance policies and by amounts in irrevocable burial arrangements.
  • Burial spaces (plot, casket, headstone, opening and closing of the grave) are excluded without a dollar limit.
  • Irrevocable prepaid funeral plans are generally excluded because the money is no longer available.

Interest earned on an excluded burial fund is also excluded if left in the fund. If burial funds are used for something else, they may count. Some states use different amounts.

Keep the account statement or designation document.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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