Who typically establishes an irrevocable funeral trust?

The establishment of an irrevocable funeral trust is typically done by the account holder themselves. This is because the person who wishes to fund the trust has the best understanding of their own desires and needs regarding funeral arrangements. By setting up an irrevocable funeral trust, they can ensure that the funds allocated for their funeral services are kept separate from their other assets, and they also qualify for certain Medicaid benefits if needed in the future.

While funeral directors may provide guidance and facilitate the process of creating a trust, they do not inherently establish the trust on behalf of the client. The family of the deceased may have input or make decisions posthumously, but they cannot create this irrevocable trust for someone else. Similarly, state administrators do not generally have the authority to establish these trusts; they focus more on the oversight and regulation of funeral services rather than the establishment of individual trusts. Thus, the account holder is the key individual responsible for initiating and establishing the irrevocable funeral trust.