Tip #5: Designated Burial Funds Exceeding $1,500
Preparing for end-of-life expenses offers comfort, but setting up these funds requires careful attention to federal rules. The Social Security Administration allows you and your spouse to set aside up to $1,500 each in designated revocable burial accounts without counting those funds against your resource limit. Any money in a revocable burial fund exceeding $1,500 counts directly toward your countable resources for SSI. Furthermore, SSA reduces your $1,500 burial fund allowance dollar-for-dollar by the face value of excluded whole life insurance policies or funds held in irrevocable burial arrangements. To secure end-of-life planning without touching your resource cap, consider establishing an irrevocable pre-need funeral contract directly with a licensed funeral home. In most states, properly drafted irrevocable burial contracts are completely exempt from the SSI resource test regardless of cost.
