Planning Ahead
Your Parent Is on Medi-Cal: How to Set Aside Funeral Money
If your parent receives Medi-Cal, the first worry is usually “can we save for the funeral at all?” Money building up in a bank account can put eligibility at risk. The short answer: funeral costs prepared in the right form are not counted as assets.
What changed in 2026
California removed the Medi-Cal asset limit in 2024 and brought it back on January 1, 2026.
| Household | Asset limit |
|---|---|
| Individual | $130,000 |
| Couple | $195,000 |
The limit applies to programs that test assets, such as long-term care and Medi-Cal for older adults and people with disabilities. Which program your parent is in is something to confirm with the county worker.
Funeral preparations that are not counted
According to California Advocates for Nursing Home Reform (CANHR), these three are exempt:
- An irrevocable burial plan: exempt with no dollar limit.
- Burial plots: plots for the person and family are exempt.
- Designated burial funds: exempt up to $1,500 per person.
So for someone close to the limit, putting funeral costs into an irrevocable contract can protect eligibility better than leaving the money in the bank.
What to watch for
- “Irrevocable” means what it says. The money cannot be taken back as cash later, so review the amount and the terms carefully.
- The contract has to state that it is irrevocable to qualify. An ordinary pre-need contract can be cancelled and may be counted as an asset.
- Moving a large sum while already on Medi-Cal can affect a review. Check before you move it.
This is general information, not legal advice. The California Cemetery and Funeral Bureau also recommends talking with an attorney or a Medi-Cal counseling agency before prepaying. Confirm eligibility questions with the county social services office or an organization such as CANHR.
Sources
- CANHR, 2026 Asset Limit Reinstatement FAQ (Korean)
- California Cemetery and Funeral Bureau, Pre-need Q&A
Still have questions?
The answer depends on your family's situation. Ask in a free 30-minute consultation.