BURIAL FUND EXCLUSION (MAM)

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Used in the adult categories of assistance only. 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