BURIAL FUND EXCLUSION (AAM) |
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If the value of the burial fund(s) added to the other countable resources results in the individual being over resources, exclude an amount up to $1,500. The excluded amount is the Burial Fund Exclusion.
1. Total all countable resources together.
2. Determine the burial fund exclusion by subtracting the following from the maximum $1,500 amount:
• combined face value of any * life insurance policies *, and
• the combined value of any irrevocable trusts or irrevocable funds designated for burial expenses.
3. The difference is the burial fund exclusion up to the $1,500 maximum.
Treatment: Excluded Resource
Example
An applicant for OAA-MA has a $1,200 prepaid revocable burial contract, a $2,000 savings account, and a life insurance policy with a $500 face value.
1. Determine countable resources.
$1,200 burial contract
+2,000 savings
$3,200 countable resources (over $2,500 resource limit)
2. Determine burial fund exclusion because the individual is over resources.
$1,500 maximum burial fund exclusion
- 500 face value of * life insurance policy
$1,000 actual burial fund exclusion
3. Subtract burial fund exclusion from burial contract.
$1,200 burial contract
- 1,000 actual burial fund exclusion (excluded resource)
$200 countable portion of the burial contract
4. Add all countable resources together.
$2,000 savings
+ 200 burial contract
$2,200 total countable resources