Heche was cremated and her ashes placed in a mausoleum at Hollywood Forever Cemetery nearly two weeks after she was declared dead at a hospital from injuries suffered in a fiery car crash.
In a statement to The Associated Press, Heche's son Homer Laffoon said he and her other son Atlas Tupper "are convinced our Mom would love the site we have chosen for her; it's beautiful, serene and she will be among her Hollywood peers".
The cemetery has in recent years become a cultural hub for film screenings, musical performances and festivals.
Laffoon went to see the band My Morning Jacket there after his mother's death, with tickets bought before she died.
He said he loved the vibrancy of the location, and took it as a sign that her grave should be there.
"Hollywood Forever is a living place," Laffoon's statement said.
A small private memorial will be held once Heche's headstone has been prepared.
"She was our Mom, but the kindness and the outpouring of the past few days reminded us that she also belongs to her fans, to the entertainment community, and now, to the ages," the statement said.
Founded in 1899 and located near the Paramount Pictures lot, the cemetery is home to the graves and tombs of actors including Judy Garland and Douglas Fairbanks, and of musicians such as Johnny Ramone and Soundgarden's Chris Cornell.
Heche's spot in the mausoleum in the cemetery's Garden of Legends is near that of actor Mickey Rooney, and faces a lake where Burt Reynolds' remains were recently relocated.
Heche, 53, was among the biggest film stars of the late 1990s, starring opposite actors including Johnny Depp, in the crime drama Donnie Brasco, and Harrison Ford, and had worked consistently in movies and television for more than three decades.
But personal turmoil, which she described in a memoir and interviews, often followed her.
On August 5, her car jumped a kerb, smashed into a West Los Angeles home and burst into flames.
She was declared brain dead on August 11, but remained on life support for three more days so her organs could be donated.
Her death was an accident caused by inhalation injuries and burns, the Los Angeles County coroner said.