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Up to $10,000 of a burial fund is excluded from countable resources. Any resource may be designated for burial, if countable. A paid-in-full burial space may be excluded. A burial space includes a single burial plot, gravesite, crypt, mausoleum, casket, urn, niche or other container used to hold the deceased body.
A prepaid (or preneed) burial contract is an agreement whereby the buyer pays in advance for a burial that the seller agrees to furnish upon the death of the buyer or other designated individual.
Funeral Trusts: Important Considerations Typically, if your contract has a guaranteed price, the funeral provider can keep any excess of the trust over the cost of the funeral. If your contract is not guaranteed, then any excess most likely goes to your estate.
The burial fund exclusion applies only if funds set aside for burial expenses are kept separate from all other resources not intended for burial. If excluded burial funds are mixed with resources not intended for burial, the exclusion will not apply to any portion of the funds.
The more common ways to plan ahead and pay for your own funeral include: Prepaid funeral plans: You pay for your funeral up front, over a period of months or years. You also get to include your final wishes. Savings: Set aside a certain amount every month.