Financial Assistance for Funerals

Although Medicaid does not typically pay for funeral expenses, four states consider Medicaid enrollment as eligibility for cremation or burial expense assistance. Since Medicaid is a state-maintained system, available assistance opportunities can vary significantly. The states with Medicaid enrollment considerations for cremation and burial expense assistance include:

• Indiana 
• Colorado
• Wyoming
• Wisconsin

If you live in one of these states, you will need to apply according to the designated process for your county or state. Aside from these options, you can reduce the financial burden by setting aside money to prepay a funeral home or to save in a separate account. As part of its financial rules, Medicaid permits recipients to set aside money for a burial fund, such as in a Totten Trust (a Payable on Death account), which is often considered part of the spend-down process. The specific rules for these accounts vary by state.

It is important to note that in most instances, funeral expenses are the sole responsibility of the family or estate. Families typically use life insurance proceeds, personal savings, or assistance from charitable organizations to cover the costs. Since assistance opportunities vary by state, working closely with a funeral director can help inform you of potential options and eligibility criteria in your area.

Sources

“Medicaid Funeral Assistance: Burial And Cremation Benefits By State”. Choice Mutual. https://choicemutual.com/blog/medicaid-funeral-assistance/ 

“Does Medicaid Pay for Cremation?” Medicare. https://www.medicare.org/articles/does-medicaid-pay-for-cremation/ 

Although the responsibility of covering funeral costs typically falls to the family or the estate of the deceased, county governments may provide financial assistance for those who are truly unable to afford these expenses. This assistance is reserved for individuals who meet specific criteria, which can vary by jurisdiction. Every state has laws dictating whether counties are responsible for covering cremation and burial costs.

If the estate lacks funds, the family is generally expected to cover the costs. If the family cannot agree, a probate judge may decide for them. However, if the deceased has no willing or financially able family, the state or county government may need to intervene. In these cases, the deceased and their family are often classified as indigent, meaning they fall below the poverty line and require financial support. Families can apply for assistance through state and county indigent burial programs, but must demonstrate a genuine financial need.

When no one comes forward to claim the body or cover costs, individuals can be deemed “unclaimed” in as little as two weeks, after which the county assumes responsibility. The county then handles arrangements, almost always opting for the most efficient option: direct cremation. After cremation, the ashes are buried in a shared grave or columbarium. This outcome is often difficult for families, as they do not receive the ashes. In rare cases, a county may opt for a casket burial if specified in an advance directive or by the next of kin, but this is uncommon. If the county cemetery is full or budgets are tight, direct cremation is the almost certain outcome.

Overall, while counties can cover funeral costs, it depends on state laws and local programs. Families who cannot pay may have costs covered but will likely lose the ability to choose burial over cremation and will not receive the ashes. Applying for indigent burial assistance does not guarantee coverage, as county budgets vary. Therefore, families are encouraged to seek alternative financial assistance and explore low-cost funeral options in case county aid is not available.

Sources

“Who Pays for Funeral Costs?” NOLO. https://www.nolo.com/legal-encyclopedia/who-pays-for-funeral-costs.html 

“What is an indigent burial, and when to opt for a state-assisted funeral?” US Funerals Online. https://www.us-funerals.com/indigent-burials-and-cremations/ 

“Who is Legally Responsible for Funeral Costs”. Ever Loved. https://everloved.com/articles/funeral-planning/who-is-legally-responsible-for-funeral-costs/

Yes, there are charities and nonprofits that are able to provide financial assistance for funeral costs according to specific criteria and guidelines. Most states have a variety of local charities that are able to assist with funeral expenses, so individuals who are seeking financial assistance are often encouraged to seek local resources first before broadening their search on a national level. At the state and local level, some organizations that can provide financial assistance for funeral expenses include: 

• Memorial societies 
• Faith-based organizations 
• Environmental organizations (if interested in green burial) 

For ease of access in identifying potential memorial societies, the Funeral Consumer Alliance has developed a directory of memorial societies throughout the United States. If state charities and nonprofit organizations are unable to help, broadening the scope of the search to include national organizations is another alternative worth consideration. National charities and nonprofit organizations often have more funding, which means they are able to extend assistance to more candidates in comparison to state charities. Some well-known national charities include: 

• The TEARS Foundation
• Kaden’s Cause
• Final Farewell
  

However, these organizations offer assistance only to parents who have lost children under the age of 18. 

While many organizations do not specify criteria for eligibility to receive financial assistance for a funeral or burial, it is not uncommon for criteria to exist. Some charities and nonprofits focus solely on providing assistance to low-income families, while others base eligibility on the circumstances surrounding the loss, such as if a child died or if a loved one was killed in a natural disaster. Additionally, some organizations work closely with funeral homes to provide assistance by providing access to services at a reduced price. 

Individuals interested in pursuing financial assistance are generally encouraged to research potential options and contact a few organizations that may be a good fit.  It is important to note that some organizations may ask applicants to indicate if they have received financial assistance from any other programs or organizations, which may influence how much assistance is awarded if the request is approved. Ultimately, charitable and nonprofit organizations have a key role in covering funeral costs and arrangements for those who are in need. 

Sources

“Find an Affiliate”. Funeral Consumers Alliance. https://funerals.org/find-an-affiliate/ 

The financial burden of funeral expenses for low-income families can make the death of a loved one even more challenging — yet there are various funeral cost benefits by state, some federal assistance options, certain religious organizations, charities and crowdfunding platforms that can help. 

As far as government assistance, in most cases, the Social Security Administration offers a one-time death benefit of $255 to spouses or minor children of a deceased individual who was receiving Social Security benefits (though this amount has remained the same since 1954, despite the significant increase in funeral costs since then). If your loved one died in a disaster, FEMA may offer burial assistance.

To learn about what benefits may be available in your state, you can check with the state’s social services department either by looking online or calling a helpline, which is often available. Many states also have memorial organizations that can help — the Funeral Consumers Alliance is a helpful resource that can direct you to state chapters. 

To find a nonprofit organization or charity that may offer support for low-income families in need of funeral expense assistance, calling 211 can be a good first step to help you find local resources. Nonprofits or charities may have specific eligibility criteria and application processes, but they can be valuable resources for those who qualify. The Jewish Free Loan Association provides interest-free loans for funeral expenses to those of the Jewish faith in certain areas.

And, often many family members and friends are willing to donate to help defray funeral expenses, and using an online crowdfunding platform like GoFundMe makes the process relatively easy. 

Finally, if your loved one was a veteran of the United States military, the US Department of Veterans Affairs (VA) provides a range of benefits for deceased veterans, including burial allowance. This can include funds for burial and funeral costs, VA plot or interment allowance for the cost of the plot (gravesite) or interment, and VA transportation reimbursement for the cost of transporting the Veteran’s remains to the final resting place. If your loved one died during active duty or from a service-related injury, there are also funeral benefits available.

Sources

“Some states offer assistance to families unable to afford funeral costs”. CNBC. https://www.cnbc.com/2022/01/19/some-states-offer-assistance-to-families-unable-to-afford-funeral-costs-.html 

“Find government benefits and financial help”. USAGov. https://www.usa.gov/benefit-finder?utm_source=usa_benefits-gov&utm_medium=redirect&utm_campaign=redirect_benefits-gov&modal=b-welcome-1899 

“Your Complete Guide to Getting Help With Funeral Costs”. Lincoln Heritage Funeral Advantage. https://www.lhlic.com/consumer-resources/need-help-with-funeral-costs-knowing-your-rights-can-save-you-money/ 

“Burial Funds & Programs That Help With Funeral Costs”. Debt. https://www.debt.org/family/help-with-funeral-costs/#Government_Burial_Assistance_Programs 

“Unexpected Life Events – Affording Funeral Costs”. Jewish Free Loan Association. https://www.jfla.org/blog/lifecycle-events-and-affording-them 

“Veterans burial allowance and transportation benefits”. U.S. Department of Veterans Affairs. https://www.va.gov/burials-memorials/veterans-burial-allowance/ 

“Veterans’ Funeral and Burial Benefits”. Funeral Consumers Alliance. https://funerals.org/get-help/veterans-funeral-and-burial-benefits/ 

The Social Security Administration offers a lump-sum death payment of $255 to eligible survivors if the person who died worked for a specific length of time at a job that provided Social Security benefits. The lump sum payment is not provided automatically, the eligible surviving spouse or child is required to apply to receive the payment within two years of their loved one’s date of death. 

Eligible individuals who are seeking to apply for the payment must complete form SSA-8 from the Social Security Administration, which can be found online or completed over the phone. The following documents should be gathered prior to completing the form to ensure that all of the necessary information is available:

• Verified copy of death certificate 
• Proof of birth or a birth certificate 
• Current W-2 forms or self-employment forms from the previous year
• Proof of citizenship or lawful alien status 
• Military discharge papers (only if the discharge was prior to 1968)

The Social Security Administration also recommends locating a checkbook or other documentation that includes an account number at a financial institution for ease of access in signing up for Direct Deposit during the application process. In addition to these documents, the eligible individual applying for the payment will be expected to answer a series of questions pertaining to the deceased. These questions can include: 

• The applicant’s name and Social Security number 
• The deceased individual’s name, date of birth, gender, and Social Security number
• The date and place of death 
• Whether the deceased filed for Social Security benefits, Medicare, or Supplemental Security Income
• Whether the deceased was in active military service
• Whether the deceased was unable to work due to illness, health conditions, or injuries during the 14 months prior to their death
• Whether the deceased worked in the railroad industry for 7 years
• Whether the deceased earned Social Security credits in another country’s social security system 
• Names, dates of birth, ages, and Social Security numbers of the deceased’s spouses, as well as marriage dates 
• Names of the deceased worker’s unmarried children 
• The amount of the deceased worker’s earnings during the year of death and the previous year 
• Whether the deceased had a parent who was a dependent for at least half of their support at the time of death 
• Whether the deceased and surviving spouse were living together at the time of death 

If the applicant is the surviving spouse, additional questions will be asked. If the applicant is not the surviving spouse, the Social Security Administration will request that the name and address of the surviving spouse be provided. It is important to note that the death benefit is a one-time payment and is not the same as the monthly benefits that are paid out to eligible survivors. Individuals that may be eligible for monthly survivors benefits can include:

• A surviving spouse, who is:
  • Full retirement age or older
  • Age 60 
  • With a disability, aged 50 through 59 
  • Any age, caring for a child under age 16 
• A child under age 18
  • Under age 19 if the child is in elementary or secondary school, or
  • With a disability 
• Dependent parents, age 62 or older 

The amount of survivors benefits paid out on a monthly basis will vary based on which criteria the eligible individual fits from the above list. In general, if the person who died had a higher amount paid into Social Security, their survivors can expect to have higher benefits per month. Additionally, survivors should be aware that there are limits on how much they can earn while receiving benefits.

Sources

“Find government benefits and financial help”. USAGov. https://www.usa.gov/benefit-finder?utm_source=usa_benefits-gov&utm_medium=redirect&utm_campaign=redirect_benefits-gov&modal=b-welcome-1899 

“Form SSA-8 | Information You Need To Apply For Lump Sum Death Benefit”. Social Security Administration. https://www.ssa.gov/forms/ssa-8.html 

“Does Social Security Pay for Funeral Expenses?” Help Advisor. https://www.helpadvisor.com/social-security/does-social-security-pay-for-funeral-expenses 

“Survivor Benefits”. Social Security Administration.  https://www.ssa.gov/survivor#h0 

“Receiving Benefits While Working”. Social Security Administration. https://www.ssa.gov/benefits/retirement/planner/whileworking.html#h1 

Yes, the Federal Emergency Management Agency (FEMA) can provide assistance if your loved one has died in a natural disaster. FEMA provides funeral assistance under the Other Needs Assistance (ONA) provision of the Individuals and Households Program. Through this provision, applicants can receive financial assistance or direct services to cover necessary expenses and serious needs resulting from a disaster. Any IHP assistance must occur within 18 months of the presidential disaster declaration, so individuals are encouraged to apply in a timely manner. Additionally, all of the following criteria must be met by the applicant in order to be eligible for assistance: 

• The applicant or someone living with the applicant must be a U.S. citizen, non-citizen national, or qualified alien 
• The applicant must not have any insurance or if they have filed an insurance claim, the claim cannot cover all of their losses
• The applicant must pass FEMA’s identity and occupancy verification if it applies
• The applicant must have expenses or serious needs due to losses in a presidentially declared disaster area

Although some types of Other Needs Assistance depend on the applicant’s approval for a disaster loan from the Small Business Administration (SBA), this condition is not applicable for funeral assistance. Individuals who are interested in requesting funeral assistance can apply for the ONA provision online, in person at a Disaster Recovery Center,  or over the phone by calling the FEMA Helpline. Additionally, applicants will be required to provide verifiable documentation to FEMA to demonstrate their need for funeral assistance. This documentation typically includes: 

• A death certificate 
• Documentation from an authoritative state or local entity attributing death or injury to the declared disaster 
• Proof that the applicant is the next of kin according to the state or local authority 
• Confirmation that funeral expenses have not been paid for with other resources 
• Proof of unmet funeral expenses 

Additionally, eligibility can vary based on the specific disaster and the circumstances. For example, funeral assistance for a disinterred coffin can only be provided if the coffin was located in a family cemetery on private property, and the coffin was removed from the ground by the disaster. Funeral assistance may also be denied if the death of the individual cannot be attributed to the disaster, funeral expenses are already fully covered by other resources, or incomplete/insufficient documentation was provided. 

Sources

“Individuals and Households Program”. FEMA. https://www.fema.gov/fact-sheet/individuals-and-households-program 

“FEMA Individuals and Households Program (IHP) – Other Needs Assistance”. Disaster Assistance. https://www.disasterassistance.gov/get-assistance/forms-of-assistance/4473 

“Disaster Funeral Assistance”. FEMA. https://www.fema.gov/pdf/media/factsheets/2011/dad_funeral.pdf 

If you or your loved one was honorably discharged from the U.S. Armed Services, you can be buried in a national cemetery, and the Veterans Administration will cover the cost of the burial plot and a grave marker as well as opening and closing fees and perpetual care. However, you will need to pay all other funeral costs, such as a viewing or service, embalming (if you choose) transportation of the body and costs associated with the burial. 

Since space in national cemeteries is limited, the VA allows veterans and their families who wish to take advantage of this benefit to submit an application in advance.This pre-determination of eligibility is based on the veteran’s service record and may be available to not only the service member but their spouse, dependent children and, in some cases, adult children who are unmarried and still living in the family home. A determination of eligibility does not, however, guarantee that the person will be buried in a specific national cemetery, nor does it grant access to  Arlington National Cemetery or the U.S. Soldiers & Airmen’s Home National Cemetery, which are maintained by the Department of the Army. 

You can find a list of national cemeteries on this interactive map supplied by the Department of Veterans Affairs.

The Department of Veterans Affairs also provides a modest funeral benefit to the survivors of eligible veterans. For service-related deaths, the agency will pay up to $2,000 if the veteran died after September 11, 2001. For non-service related deaths, they will pay up to $893 toward burial and funeral expenses and $893 for a burial plot as of January 2023. (This amount may increase in 2024.)  The VA will also pay up to $231 for a headstone or marker. 

Additional benefits may be available to survivors of veterans who died of a service-related disability. 

Sources

“Smart Ways to Cover the Costs of a Funeral”. AARP. https://www.aarp.org/family-relationships/paying-for-cost-of-funeral/ 

“Pre-need eligibility for burial in a VA cemetery”. U.S. Department of Veterans Affairs. https://www.va.gov/burials-memorials/pre-need-eligibility/

“National Cemetery Administration”. U.S. Department of Veterans Affairs. https://www.cem.va.gov/find-cemetery/index.asp 

“Veterans burial allowance and transportation benefits”. U.S. Department of Veterans Affairs. https://www.va.gov/burials-memorials/veterans-burial-allowance/