Burial Fund Exclusion (SSI) — SSI burial fund
An SSI rule that lets you set aside up to $1,500 per spouse in clearly designated burial funds without that money counting toward the SSI resource limit.
Official source: ssa.gov
## What it covers
The burial fund exclusion lets SSI recipients (and their spouses) set aside up to **$1,500 each** — up to **$3,000 for a couple** — in funds clearly designated for burial expenses, without that money counting toward SSI's $2,000 individual / $3,000 couple resource limit.
## What also gets excluded (no dollar limit)
- Burial spaces: plots, vaults, headstones, urns, caskets. - Burial agreements: pre-paid funeral contracts that meet state law.
These exclusions stack on top of the $1,500 burial fund exclusion.
## How to designate burial funds
- Keep the money in a separate, clearly labeled account (savings, money market, or a small life insurance policy). - Do not commingle with everyday savings. - Notify SSA in writing of the burial designation.
## How the $1,500 limit can be reduced
The $1,500 is reduced dollar-for-dollar by:
- The face value of any life insurance policy that is owned by you. - The value of any irrevocable burial contract you already have.
If you have a $1,000 life insurance policy, your burial fund exclusion drops to $500.
## Interest earned
Interest that stays in the burial fund account is also excluded, as long as the funds remain designated for burial.
## Why this matters
Pre-paying or setting aside burial money is one of the cleanest ways to plan for end-of-life expenses without losing SSI. Pair it with an ABLE account or special needs trust for broader resource planning.
Also known as
Frequently asked questions about Burial Fund Exclusion (SSI)
Does the burial fund need to be in a separate bank account?+
It should be separately identifiable. A separate account is the easiest way to prove the funds are designated for burial.
What if I already have a life insurance policy?+
The face value of life insurance you own reduces your $1,500 burial fund exclusion dollar-for-dollar.
Can my burial fund be shared with my spouse?+
No. Each spouse has their own $1,500 exclusion — they cannot be combined into one account for one person.
Does a pre-paid funeral plan count separately?+
Yes. Burial spaces and qualifying burial agreements are excluded from SSI resources with no dollar limit, in addition to the $1,500 burial fund exclusion.
Do I need to tell SSA about the burial fund?+
Yes. Report it in writing so SSA can properly exclude it from your countable resources.
Source: ssa.gov