BURIAL FUND EXCLUSION SR 94-04, 04/94 (AAM-A)

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 excluded life insurance policies (policies that meet the $1,500 face value test), 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 excluded 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