Wyoming Medicaid Burial Rules: Burial Funds, Irrevocable Contracts and Insurance

Wyoming Medicaid burial rules follow the federal SSI model closely, with a $1,500 burial fund and a $1,500 life insurance face-value test. Wyoming’s Eligibility Online Manual adds its own details: how to turn a revocable burial trust into an irrevocable one, a transfer-penalty rule for insurance-funded funeral plans, and an estate recovery program that reaches unused burial contract money. This guide explains each rule for nursing home and aged, blind and disabled applicants, with a worked example.

This is general information, not legal advice. Before you assign a policy, sign a funeral contract or move money, talk with a Wyoming elder law attorney. Legal Aid of Wyoming helps eligible residents, and the Wyoming State Bar can help you find a private attorney.

Wyoming Medicaid burial rules and the asset limit

Wyoming Medicaid rules, Chapter 18, Section 8(d)(vi) (amended effective May 23, 2025), say that resources for aged, blind and disabled applicants may not exceed the SSI resource limits. The federal SSI limits in 20 CFR 416.1205 are $2,000 for an individual and $3,000 for a couple. Institutional and waiver applicants with a spouse at home get an additional Community Spouse Resource Maintenance Allowance.

The Wyoming Medicaid burial rules below decide what falls outside that limit. Wyoming’s long-term care checklist says assets are reviewed as of the first day of the month you apply, and that records for a five-year look-back may be requested. The Long-Term Care Eligibility Unit is at 1-855-203-2936.

Figures are from the Wyoming Medicaid Eligibility Online Manual and Wyoming Medicaid rules as of October 2026 and are shown for illustration only. They are not quotes or offers, and they can change. Confirm current numbers with the Wyoming Department of Health or a licensed agent.

The $1,500 Wyoming Medicaid burial fund

Under the Wyoming Eligibility Online Manual’s Table 8 (effective January 1, 2026), Wyoming exempts $1,500 of burial funds held in revocable burial contracts, certificates of deposit, bank accounts and other financial instruments. The table says there is only one $1,500 exclusion for all funds set aside for burial.

• Clearly designated. Burial funds must be clearly designated and set aside for burial expenses.
• Kept separate. If burial funds are mixed with money not meant for burial, no part of them is exempt.
• Interest. Interest is exempt when the fund was under $1,500 at the time it was set aside for burial.
• Life insurance can count as burial money. A policy designated for burial that meets the burial funds criteria can be exempt under the same rule.

The Wyoming Medicaid burial fund is small compared with the cost of a funeral. That is why the irrevocable contract rules below matter more for most families.

How Wyoming counts life insurance

Table 8 exempts a life insurance policy, or a combination of policies, when it is term insurance with no cash surrender value, or when the combined face value of all policies does not exceed $1,500. In that case, the cash surrender value is also exempt.

If the combined face value is over $1,500, the cash value counts toward the $2,000 limit. A typical final expense policy with a $5,000 to $15,000 face value will be counted. A policy designated for burial may still use the $1,500 Wyoming Medicaid burial fund exemption.

For the Medicare Savings Programs only, Table 8 exempts the cash value of all life insurance. That generous rule does not apply to nursing home or aged, blind and disabled Medicaid.

Wyoming irrevocable burial contracts and assigned policies

Table 8 exempts irrevocable burial contracts “when the client cannot revoke, dissolve or cancel the contract for any reason.” No dollar cap is stated. Wyoming adds practical rules:

• Converting a revocable trust. A revocable burial trust can be exempt if a written amendment states “I wish to make this an irrevocable trust,” initialed and dated by the funeral home and the client or representative.
• Policies assigned to a funeral home. A policy can fund a Wyoming irrevocable burial contract. It is exempt when ownership has been irrevocably assigned to a funeral home.
• The transfer-penalty trap. If the goods and services bought from the funeral home are worth less than the policy’s cash surrender value, Wyoming treats the difference as a transfer below fair market value, with a penalty under manual section M804.

Before assigning a policy, compare the funeral home’s itemized goods and services with the insurer’s cash surrender value statement. A Wyoming irrevocable burial contract should be worth at least as much as what you give up.

Burial plots and burial space items

Table 8 exempts burial space items in an agreement, including accumulated interest, when the purchase is paid in full. The exemption covers burial spaces held for the client, the client’s spouse, or any member of the client’s immediate family. For burial plots, the table exempts one for each person in the household assistance unit.

Two points to watch under the Wyoming Medicaid burial rules: items must be paid in full, and the plot rule is one per person. For the Medicare Savings Programs, Table 8 exempts the value of all burial plots.

Federal context. The federal SSI rule at 20 CFR 416.1231 excludes burial spaces for the individual, spouse and immediate family and sets a $1,500 burial funds exclusion, reduced by irrevocable burial arrangements. Wyoming’s Table 8 uses the same $1,500 figure.

Hypothetical example: Wyoming’s numbers for a nursing home applicant

Hypothetical example. Helen is 79, single and entering a Wyoming nursing home. On the first of the month she owns:

• Checking: $1,300.
• A whole life policy: $6,000 face value, $2,600 cash value.
• A separate savings account designated for burial: $1,500.
• One cemetery plot.

Step 1, life insurance. Face value is over $1,500, so the $2,600 cash value counts.

Step 2, burial fund. The $1,500 burial account is kept separate and is exempt. The plot is exempt.

Step 3, total. $1,300 + $2,600 = $3,900. That is $3,900 − $2,000 = $1,900 over.

One possible fix. With an attorney, Helen irrevocably assigns ownership of the policy to a funeral home for a funeral worth at least $2,600, and adds her $1,500 burial savings to the same irrevocable contract. Neither counts. Her countable resources are $1,300, under $2,000. Folding in the savings avoids any question of the contract reducing her $1,500 Wyoming Medicaid burial fund exemption, as federal SSI rules would. Because the Wyoming irrevocable burial contract is worth more than the cash value she gave up, no transfer penalty should arise. This is an illustration only.

Wyoming Medicaid estate recovery and unused burial funds

Wyoming Medicaid estate recovery is governed by Chapter 35, Section 11 and W.S. §§ 42-4-206 and 42-4-207. It applies to clients who were 55 or older or who were inpatients in a nursing facility or other medical institution. Recovery waits until a surviving spouse has died, and does not proceed while there is a child under 21 or a blind or permanently and totally disabled child.

The Department of Health’s estate recovery brochure (March 2022) lists what an estate can include:

• the home and other real estate, savings bonds and stocks;
• unused burial funds from a burial contract;
• checking and savings balances, whether solely owned, joint, or payable on death; and
• assets passing by joint tenancy, survivorship, life estate or living trust.

Here the Wyoming Medicaid burial rules and estate recovery meet: plan a funeral contract that uses the money fully. Hardship waivers are narrow, generally for a working farm or ranch that is the heirs’ sole source of income.

Wyoming Medicaid burial rules checklist

1. Check that countable resources will be within $2,000 ($3,000 for a couple) on the first of the month.
2. Add the face value of every policy. If it is over $1,500, the cash value counts.
3. Keep any burial money in a separate, clearly designated account, up to $1,500.
4. If a burial trust is revocable, ask about the written irrevocable amendment Table 8 describes.
5. Before assigning a policy, compare its cash value with the funeral goods and services.
6. Pay burial space items in full and get an itemized agreement.
7. Remember the plot rule: one per person in the household.
8. Keep records for the five-year look-back.
9. Expect unused burial contract funds to be part of Wyoming Medicaid estate recovery.
10. See a Wyoming elder law attorney before acting.

Wyoming Medicaid burial rules: frequently asked questions

How much burial money can I keep in Wyoming?

Up to $1,500 in designated burial funds, kept separate from other money. An irrevocable burial contract that cannot be revoked for any reason is exempt with no stated cap, and paid-in-full burial space items are exempt.

Does my life insurance count for Wyoming Medicaid?

Yes, if the combined face value of your policies is over $1,500; the cash value then counts. Term life and policies totaling $1,500 or less in face value are exempt.

Can I make my revocable burial trust irrevocable?

Table 8 recognizes a written amendment stating “I wish to make this an irrevocable trust,” initialed and dated by the funeral home and you or your representative. Ask your attorney before signing.

Is there a penalty for assigning my policy to a funeral home?

There can be. If the funeral goods and services are worth less than the policy’s cash surrender value, Wyoming treats the difference as a transfer below fair market value.

Does Wyoming Medicaid estate recovery take leftover funeral money?

The Department’s brochure lists unused burial funds from a burial contract as part of the estate. Joint and payable-on-death accounts are included too.

Who answers Wyoming Medicaid eligibility questions?

The Long-Term Care Eligibility Unit at 1-855-203-2936. For estate recovery, the Division of Healthcare Financing is at (307) 777-7531; ask for the Program Integrity Unit.

How Octans can help Wyoming families

Octans is an independent agency, and our licensed agents compare final expense and burial insurance options from more than 120 carriers. We are not attorneys. Once your attorney confirms how a policy fits the Wyoming Medicaid burial rules, we can help you price coverage. Estimate costs with our funeral cost calculator, read our guide to life insurance for seniors, or see our Wyoming life insurance guide. Call (617) 935-9220.

Keep Reading: Related Guides

• Life insurance in Wyoming
• Final expense insurance
• Burial insurance
• Funeral cost calculator
• Medicare Supplement rates in Wyoming
• Free Medicare help in Wyoming
• Medicare Advantage plans in Wyoming (2027)
• Unclaimed life insurance in Wyoming

Important: Octans Insurance agents are licensed in the states in which they operate. Coverage availability and rates may vary by state. Premium examples, when provided, are illustrative samples from published sources, not quotes. Final rates are determined by the insurance carrier based on underwriting and applicable policy criteria. Policy terms, exclusions, limitations, riders, and availability vary by carrier and state.

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