Many families hear about prepaid funeral trusts (sometimes called irrevocable funeral trusts) but aren’t sure how they work or whether they’re the right choice. To help you feel informed and confident, we’ve put together answers to the questions we hear most often at Legacy of Love Funeral Planning.
A prepaid funeral trust is a secure way to set aside funds for funeral and burial expenses in advance. The money is specifically designated for final arrangements, providing peace of mind that everything is taken care of when the time comes.
Unlike savings accounts, money in an irrevocable funeral trust is generally not counted as a personal asset when applying for Medicaid. This means it can protect funds from being spent down and ensures they are used for their intended purpose.
Any individual can set up a prepaid funeral trust. There are no income or health requirements to qualify. This makes it a flexible option whether you’re planning ahead for yourself or helping a loved one prepare. It is important to work with an expert to make sure the trust is structured properly, complies with state regulations, and fits within your overall financial and Medicaid planning goals.
This amount can vary by state. Some states set limits, while others allow trusts to cover “reasonable” funeral and burial expenses. It’s best to consult with a professional, like Legacy of Love Funeral Planning, to understand your local rules.
Legacy of Love's prepaid funeral trust policies are portable. Even if you relocate, the funds remain earmarked for funeral expenses. Your funeral planner can help adjust arrangements to fit your new location if needed.
Yes. Once the trust is created, the funds must remain in it and can only be used for funeral and burial expenses. This is what allows it to be protected from Medicaid asset recovery.
Absolutely. Pre-planning allows you to decide everything from burial or cremation, type of service, music, flowers, and more—ensuring your wishes are honored and relieving your loved ones of difficult decisions. You can start your FREE Legacy of Love funeral plan by CLICKING HERE »
Because the funds in an irrevocable funeral trust are not considered “countable assets,” families can use this option to reduce assets in a way that both qualifies for Medicaid and protects money for final expenses.
Depending on the state, excess funds may go back to the estate or be allocated to other approved expenses. This is another reason it’s helpful to work with an experienced funeral planner who knows the rules.
Funds in a Legacy of Love prepaid funeral trust are held by a financial institution, not by an individual funeral home itself. This ensures security and oversight, so families can feel confident their money is protected and will be there to cover funeral expenses.
At Legacy of Love Funeral Planning, we’re here to answer your questions, explain your options, and guide you step-by-step. From setting up an irrevocable funeral trust to pre-planning meaningful services, we provide:
Prepaid funeral trusts may sound complicated, but at their heart, they are about love, planning, and peace of mind. By setting one up, families can protect assets, ease financial stress, and ensure wishes are honored. If you’re considering a prepaid funeral trust for yourself or a loved one, Legacy of Love Funeral Planning is here to help. CLICK HERE to start your free funeral plan now, or call Legacy of Love at 833-888-0355 or fill out our online form and we'll respond right away.
