WHAT IS A BURIAL FUND?

A burial fund is money set aside to pay for burial expenses. For example, this money can be in a bank account, other financial instrument, or a prepaid burial arrangement.

Some states allow an individual to pre–pay their burial by contracting with a funeral home and paying in advance for their funeral. You should discuss this with your local Social Security office.

spotlight

DOES A BURIAL FUND COUNT AS A RESOURCE FOR SSI?

Generally, you and your spouse can set aside up to $1,500 each to pay for burial expenses. In most cases, this money will not count as a resource for Supplemental Security Income (SSI).

If you (and your spouse) own life insurance polices or have other burial arrangements in addition to your $1,500 burial funds, some of the money in the burial fund may count toward the resource limit of $2,000 for an individual or $3,000 for a couple.

DOES INTEREST EARNED ON YOUR (AND YOUR SPOUSE'S) BURIAL FUND COUNT AS A RESOURCE OR INCOME FOR SSI?

No. Interest earned on your (or your spouse's) burial fund that you leave in the fund does not count as a resource or income for SSI and does not affect your SSI benefit.

HOW CAN YOU SET UP A BURIAL FUND?

Any account you set up must clearly show that the money is set aside to pay burial expenses. You can do this either by:

    small blue and black arrowtitling the account as a burial fund; or
    small blue and black arrowsigning a statement saying
    blank spacerhow much has been set aside for burial expenses,
    blank spacerfor whose burial the money is set aside,
    blank spacerhow the money has been set aside, and
    blank spacerthe date you first considered the money set aside for burial expenses.

WHAT HAPPENS WHEN YOU SPEND MONEY FROM A BURIAL FUND?

If you spend any money from a burial fund on items unrelated to burial expenses, there may be a penalty.



THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE INTERNET,
OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE.