Yes. Funeral trust, burial trust, irrevocable funeral trust, and funeral expense trust all describe money set aside in a trust to pay for final expenses.

It's considered an exempt asset for Medicaid in most states, as long as it's irrevocable and meets your state's rules. That's why families use it during a Medicaid spend-down.

No. A funeral trust can be set up during a spend-down or right before a Medicaid application. It isn't a gift, so it doesn't trigger the 5-year look-back penalty.

Usually in 1 to 2 business days, paid straight to the funeral home, with no death certificate required.

No. An irrevocable funeral trust can't be cancelled or cashed out. That's what keeps it from counting for Medicaid.

In most states, the state is named as the beneficiary of any leftover funds to repay Medicaid costs. Setting a realistic amount keeps leftovers small.

Some states allow funeral trusts to be purchased for immediate family members, like a spouse, children, siblings, or parents. Rules vary by state.

No. There are no setup fees. You choose how much to put in the trust.

Usually not. Most families set up a funeral trust with a licensed insurance agent. Talk to an elder law attorney if your parent's Medicaid situation is complex.