PM 07-02-08: Burial Funds

WAG 07-02-08


New text  A person's money can be set aside as a burial fund or used to purchase a contract with a funeral home to cover the funeral and burial expenses of the person and/or their spouse.


Money set aside as a burial fund must be separate and identifiable as a fund to cover funeral and burial expenses to be exempt.


The funeral home provides a person with a prepaid burial contract when the person prepays funeral and burial expenses to a funeral home. The money paid by the person is used to establish a prepaid burial contract or purchase life insurance that pays for the burial at time of death.


The amount that is exempt depends on whether the burial fund has:

  • money in a bank account set aside for funeral and burial expenses,
  • a revocable prepaid burial contract with a funeral home,
  • an irrevocable prepaid burial contract with a funeral home,
  • a prepaid burial contract with a funeral home, funded by a life insurance policy, or
  • New text a prepaid burial contract funded by an irrevocable assignment of the life insurance policy to the funeral home or funeral director.