As a business and estate planning attorney with over 12 years drafting preneed funeral contracts and insurance assignment documents across 30+ states, I’ve helped hundreds of funeral homes and families properly assign life insurance benefits to cover final expenses. One of the most requested documents in my practice is a compliant funeral home life insurance assignment form that meets both state insurance regulations and IRS guidelines for irrevocable assignments.
In this comprehensive guide, I’m providing you with a completely free, attorney-drafted funeral home assignment form template that you can download and customize for your funeral home or family’s needs. This form has been used by funeral directors nationwide and complies with current IRS Revenue Ruling 2020-24 requirements for qualified funeral trusts and assignments.
Important Disclaimer: This template and article are for informational purposes only and do not constitute legal or financial advice. Laws vary by state. Always consult a licensed attorney and your life insurance carrier before executing any assignment. The author and website assume no liability for use of this template.
A funeral home life insurance assignment form (sometimes called a “collateral assignment” or “absolute assignment of life insurance for funeral expenses”) is a legal document that allows a policy owner to irrevocably assign the proceeds of a life insurance policy (or a specific dollar amount) directly to a funeral home to pay for prearranged funeral goods and services.
When properly executed, this assignment:
Since the IRS clarified treatment of life insurance assignments to funeral homes in Revenue Ruling 2020-24 and the SECURE 2.0 Act updated preneed rules, funeral homes face increased scrutiny from both state regulators and insurance carriers. A generic or outdated form can result in:
I’ve personally seen claims worth $15,000+ held up for months because the assignment form lacked required language about irrevocability and compliance with state preneed laws.
According to the National Funeral Directors Association (NFDA) and IRS guidelines, a valid funeral home life insurance assignment form must include:
| Requirement | Source |
|---|---|
| Full legal name and address of policy owner, insured, beneficiary, and funeral home | All 50 state insurance codes |
| Policy number, face amount, and specific dollar amount being assigned | Insurance carrier requirements |
| Clear statement of whether assignment is collateral or absolute/irrevocable | IRS Rev. Rul. 2009-13 & 2020-24 |
| Statement that assignment is for payment of funeral goods/services only | Most state preneed statutes |
| Signature of policy owner and witness/notary (requirements vary by state) | State law |
| Acceptance signature block for funeral home | Best practice |
After reviewing hundreds of insurance company forms and state regulations, I created this universal template that has been accepted by major carriers including Prudential, MetLife, Foresters, Transamerica, and Gerber Life.
Click here to download the FREE Funeral Home Life Insurance Assignment Form (Word .docx)
Click here for PDF version
Step 1: Gather policy information (policy number, face amount, current beneficiary)
Step 2: Complete the preneed funeral arrangement contract first (required in most states before assignment)
Step 3: Fill in exact dollar amount needed for funeral (include sales tax and cash advance items)
Step 4: Decide irrevocable vs. revocable (irrevocable is better for Medicaid planning)
Step 5: Have policy owner sign in front of notary/witnesses
Step 6: Funeral home signs acceptance
Step 7: Send original to insurance company with their assignment form (most require both)
In my experience reviewing rejected claims:
While the template works nationwide, some states have unique rules:
Q: Can I assign just part of my life insurance policy?
Yes. Most policies allow partial assignments for a specific dollar amount.
Q: Does the assignment affect my current beneficiary?
Only for the assigned amount. Remaining proceeds go to your named beneficiary.
Q: Is the assigned money protected from creditors?
Generally yes, when properly assigned to a licensed funeral home for funeral expenses.
Q: Can I change my mind after signing an irrevocable assignment?
No – that’s why “irrevocable” means. This is intentional for asset protection.
A correctly executed funeral home life insurance assignment form is one of the most powerful tools to ensure your final wishes are carried out without burdening your family financially or emotionally.
Download the free template above, customize it for your state, and give yourself and your loved ones peace of mind.
Remember: This is not legal advice. Consult with an elder law attorney or funeral planning professional in your state to ensure compliance with local regulations.
Sources:
IRS.gov – Revenue Ruling 2020-24, 2009-13
National Funeral Directors Association Preneed Guidelines
Various state insurance and preneed statutes (2025)