Indiana Burial Assistance Program: State, Local, and Federal Aid

When facing the loss of a loved one, the significant costs of a funeral, burial, or cremation can add immense financial strain. For Indiana residents, several support systems exist to help alleviate this burden. The primary resource is the official Indiana burial assistance program from the Family and Social Services Administration (FSSA), which aids certain Medicaid recipients.

This is not the only option, however. Local Township Trustees offer aid for indigent residents as a last resort, and crucial federal benefits are available through the Social Security Administration and the Department of Veterans Affairs (VA). Understanding these distinct state, local, and federal programs is the first step toward securing the financial support needed for a dignified farewell.

The Indiana FSSA Burial Assistance Program: State-Level Medicaid Support

The main state-level program is a specific benefit tied directly to the deceased's Medicaid status. It is not a general fund for all residents but a targeted form of assistance with a clear, provider-led application process.

Program Definition and Purpose

The Indiana Burial Assistance Program is managed by the Family and Social Services Administration (FSSA) through its Division of Family Resources (DFR). Its purpose is to help pay for the final arrangement costs for deceased individuals who were enrolled in specific, eligible categories of Indiana Medicaid at the time of their death. This program provides direct reimbursement to funeral homes and cemeteries, not to the families of the deceased.

Eligibility: Who Qualifies for FSSA Assistance?

Eligibility for the FSSA Burial Assistance Program is determined entirely by the deceased person's Medicaid status at the time of death.

Eligible Medicaid Categories

To qualify, the individual must have been enrolled in one of the following specific Medicaid categories :  

• MA A: Medicaid for the Aged
• MA B: Medicaid for the Blind
• MA D: Medicaid for the Disabled
• MA DW: Medicaid for the Disabled Working
• MA R: Medicaid for Room / Board Nursing Home
• MA SI: Medicaid for Supplemental Security Income (SSI) recipients

How Eligibility is Verified

Families do not need to navigate state bureaucracy to prove their loved one’s status. The system is designed for the funeral provider to handle this step. Funeral homes, cemeteries, and township trustee offices call the FSSA directly to confirm eligibility before making arrangements. Providers can use a dedicated phone line (800-403-0864, prompt #7) to get the necessary case number and assistance category.

This provider-led verification means the most important first step for a family is to select a funeral home experienced in filing for the Indiana FSSA Burial Assistance Program. Asking a potential funeral director, "Do you have experience with the state's Medicaid burial assistance?" can prevent procedural errors.

Financial Benefits: What the Program Covers

If the deceased is confirmed to be eligible, the program provides a set amount of financial assistance paid directly to the service providers. The state does not reimburse family members.

The maximum reimbursement amounts are:

• Up to $1,200 for funeral expenses.
• Up to $800 for cemetery expenses.

Families and friends are permitted to contribute additional funds. The FSSA officially states there is no limit on contributions. However, some providers indicate there may be a practical limit on the total contract value; one source notes families can contribute up to an additional $2,600. Families should confirm the total allowable cost with their provider to ensure private contributions do not jeopardize the state's payment.  

The Application Process: A Provider-Led System

Families cannot apply for this assistance directly. The funeral home or cemetery is solely responsible for completing and submitting the claim using  

State Form 35937, Medicaid Recipients Claim to Defray Burial Costs.  

The provider follows these steps:

1. Verify Eligibility: The provider calls the FSSA at 800-403-0864 to confirm the deceased's Medicaid case number and category.
2. Complete Form 35937: The form is filled out with the deceased's information, a breakdown of expenses, and a list of any contributions from other sources.
3. Submit the Claim: The completed packet is sent to the DFR Burial Unit via fax (317-234-5075) or email (IndianaBurialClaims@fssa.in.gov).
4. Meet the Deadline: The claim must be filed within 90 days of the individual's date of death.

The FSSA no longer requires documents like the death certificate or funeral contract with the initial claim. However, providers must keep this documentation on file in case of an audit.

Township Trustee Burial Assistance: Local Aid for Indigent Residents

Separate from the state's Medicaid-based program, Indiana law tasks over 1,000 locally elected Township Trustees with providing essential services for the poor, including burial for indigent residents. This aid functions as a critical safety net but operates under different rules.

The Role and Legal Duty of the Township Trustee

A Township Trustee is an elected official responsible for administering emergency assistance to residents in crisis. This duty is legally mandated by state law.

Indiana Code § 12-20-16-12 requires the trustee to oversee the funeral and burial or cremation of an individual who dies within the township without assets to cover final expenses.

Eligibility: The "Last Resort" Standard

Township Trustee assistance is strictly defined as aid of the "last resort". This means all other potential funding sources must be exhausted first. Eligibility is based on indigence, not Medicaid status. Indiana law requires a Medicaid eligibility check before applying for township assistance, so the first step is always to have a funeral home check for FSSA eligibility.

Core Eligibility Requirements

The primary eligibility requirements for trustee burial assistance include:

• Residency: The deceased must have been a resident of the township at the time of death.
• Indigence: The deceased must have left no liquid assets, such as bank funds, real estate, vehicles, or other valuables.
• No Financially Capable Family: Trustees may investigate the financial status of relatives. If family members are found to have the means to pay, assistance can be denied.

How to Apply for Township Assistance

The application process for township assistance is intensive and must be handled by the family or next-of-kin.

Step 1: Locate Your Township Trustee

Indiana has over 1,000 townships. To find the correct office, check the official website for the county where the deceased resided or call the County Clerk's office for guidance. County government sites often provide directories of their township trustees.

Step 2: Apply Before Making Arrangements

It is crucial that the application is filed before making any funeral arrangements. Many trustee offices require an appointment to apply using Indiana's official Township Assistance Application, Form TA-1.

Step 3: Gather Extensive Documentation

Applicants should be prepared to provide significant documentation, including:

• The completed and signed application form (TA-1).
• Proof of the deceased's residency (e.g., a lease, utility bill, or state ID).
• Proof of the deceased’s financial status, demonstrating a lack of assets (e.g., bank statements).
• Proof of household situation (e.g., Social Security numbers and birth certificates for all household members).
• Documentation showing denial of aid from other sources.

The Decision Process

Once a completed application is submitted, the trustee has 72 hours (excluding weekends and holidays) to make a decision. If assistance is denied, the trustee must provide a written denial slip explaining the reason and the applicant's right to appeal within 15 days.

Nature of Assistance and Critical Trade-Offs

Township assistance is not cash. The trustee issues a voucher or makes a direct payment to a funeral home. Accepting this aid involves a significant trade-off: the family often cedes control over the final arrangements.

The trustee's legal duty is to provide a dignified disposition in the most economical manner. Under Indiana Code § 12-20-16-12(h), the cost cannot exceed that of the least expensive funeral available. This typically means a direct cremation with no viewing, unless the deceased had a pre-existing, signed objection to cremation.

Federal Programs for Funeral and Burial Support

In addition to state and local aid, federal programs offer benefits that can be pursued by eligible Indiana residents. These are independent of the FSSA and township programs.

Social Security Lump-Sum Death Payment

The Social Security Administration (SSA) provides a one-time, lump-sum death payment of $255. This benefit is not a general funeral grant.

• Eligibility: The payment is made only to a surviving spouse who was living with the deceased. If there is no qualifying spouse, it can be made to a surviving child who meets certain requirements.
• Application: The benefit is not automatic. The eligible survivor must apply by calling the SSA at 1-800-772-1213 within two years of the date of death.

VA Burial Benefits for Indiana Veterans

The U.S. Department of Veterans Affairs (VA) offers valuable burial benefits to honorably discharged Veterans.

Monetary Benefits (Burial Allowance)

The VA provides a burial allowance to help with funeral costs. The amount depends on whether the Veteran's death was service-connected.

• For a Service-Connected Death: The VA will pay a burial allowance of up to $2,000.
• For a Non-Service-Connected Death: The VA pays a burial and funeral expense allowance and a plot-interment allowance, with amounts adjusted for inflation.

To apply, a family member or funeral director must submit VA Form 21P-530EZ, Application for Burial Benefits, with a copy of the death certificate and proof of military service (DD Form 214). Some Indiana counties also offer a supplemental burial allowance of up to $100 for veterans.

Burial and Memorial Benefits (Non-Monetary)

The VA also provides several non-monetary benefits at no cost to the family, including;

• Burial in a VA National Cemetery: Includes the gravesite, opening and closing of the grave, and perpetual care.
• Government Headstone or Marker: For any eligible Veteran in any cemetery worldwide.
• U.S. Burial Flag: To drape the casket or accompany the urn.
• Presidential Memorial Certificate: A certificate signed by the current U.S. President.
• Military Funeral Honors: Includes the folding and presentation of the flag and the playing of "Taps."

A Clear Path Forward: Comparing Your Options

Navigating these programs during a time of grief can be overwhelming. The FSSA program is for specific Medicaid recipients and is handled by the funeral director. Township Trustee assistance is a last resort for the indigent and requires an intensive application. Federal benefits have their own eligibility related to work history and military service.

Frequently Asked Questions