Understanding Social Security & Medicaid Funeral Benefits

Planning Ahead: What You Should Know About Social Security & Medicaid Funeral Benefits

When a death occurs, families often face not only emotional challenges but also financial ones. At Creran Celebration Etherington & Creran Funeral Homes, we believe that knowledge is a gift, and understanding what resources are available can lighten the burden during a difficult time.

Two major government programs—Social Security (SSA) and Medicaid (SSI)—offer limited but important benefits that can be used to help with funeral expenses. However, many families don’t know how they work or what support they can expect.

Here’s a simple breakdown of each program and how these benefits may assist you.

What Does Social Security Provide After a Death?

Social Security is a federal benefit available to most people who have worked and paid into the system. Upon death, Social Security provides two potential benefits:

1. Lump-Sum Death Benefit

• Amount: A one-time payment of $255 - payable to a legally married surviving spouse, a registered domestic partner, or a licensed civil union partner
  
  
• Who can receive it: Usually paid directly to a surviving spouse, registered domestic partner, or a licensed civil union partner if there is none, or a dependent child. Payments are estimatedt to be made within 2 to 3 months of notifying Social Security.
  
  
• How to claim it: Contact the Social Security Administration (SSA) directly at 1-800-772-1213 or online at www.ssa.gov
  
  

⚠️ Important Note: Funeral homes in New Jersey report deaths to Social Security through the NJ Electronic Death Registration System (NJEDRS). This confirms the number accuracy and ensures government records are updated, but families may still contact Social Security to apply for any death benefits.

2. Survivor Benefits

• Monthly benefits for eligible family members, such as:
  
  
• Widows or widowers age 60+ (or 50+ if disabled)
  
  
• Children under age 18 (or 19 if still in high school)
  
  
• Dependent parents age 62+
  
  
• These benefits help replace lost income, not funeral costs directly, but may ease financial strain over time.
  

What Does Medicaid Provide for Funeral Expenses?

Medicaid is a state-managed, needs-based program offering health coverage and benefits for those with limited income and assets. It does not provide a direct cash benefit like Social Security, but it does support families in two major ways:

1. Medicaid Funeral and Burial Allowance (In Some States, Including NJ)

• In New Jersey, Medicaid makes available a funeral assistance subsidy for qualified recipients:
  
  
• Funeral allowance: Up to $3,056
  
  
• Disposition allowance (cemetery or crematory): Up to $714
  
  
• These benefits are conditional, pending application, and paid directly to the funeral home and cemetery, or crematory, not directly to the applying party.
  
  

✅ This means our guests can still create a meaningful goodbye, without bearing the full financial responsibility.

2. Medicaid-Compliant Burial Trusts

• For individuals applying to Medicaid for long-term care, funds can be set aside in advance in an irrevocable trust. This is part of New Jersey’s asset exclusion rule to benefit spenddown.
  
  
• These trusts are exempt from asset limits, which helps legally protect money designated for funeral and disposition expenses.
  
  
• This type of advanced planning gives peace of mind and ensures that final wishes can still be honored without jeopardizing Medicaid eligibility.
  

So, What’s the Difference Between Social Security and Medicaid When It Comes to Funerals?

While both Social Security and Medicaid offer support after a death, they do so in very different ways. Social Security is a federal program that provides a modest one-time death benefit of $255, typically paid to a surviving spouse or dependent child. In some cases, ongoing monthly survivor benefits may also be available, but these are intended to help replace lost income—not directly cover funeral expenses.

Medicaid, on the other hand, is a needs-based state program designed for individuals with limited income and assets. In New Jersey, Medicaid can provide up to $3,770 in total for funeral and burial costs—$3,056 for funeral services and $714 for burial or cremation expenses. These funds are usually paid directly to the funeral home. Additionally, Medicaid allows individuals to set aside money in an exempt burial trust before death, preserving funds for funeral arrangements without affecting their eligibility for healthcare benefits.

In short, Social Security provides a small cash benefit to surviving family members after death, while Medicaid offers more substantial support directly toward funeral costs, especially when pre-planning is involved.

How Creran Celebration Can Help

We understand the complexities that come with navigating government programs during a time of loss. That’s why we’re here to assist you in:

• Filing the necessary forms with Social Security and Medicaid
  
  
• Creating a Medicaid-compliant funeral plan
  
  
• Applying for available funeral and burial assistance
  
  
• Offering flexible payment plans and custom service options
  
  

Planning a goodbye that is both meaningful and affordable is possible—and we’re here to walk you through it with compassion and clarity.

📞 Have questions or need help applying for benefits?
Contact Creran Celebration Etherington & Creran Funeral Homes today at (856) 456-0599, text us at (856) 208-7408, e-mail us at dennis@crerancelebration.com, or visit us in Creran Celebration Etherington Funeral Home, Gloucester City, or Creran Celebration Creran Funeral Home, Oaklyn.



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