The cash value of a burial fund is considered an available resource if the individual is allowed to withdraw money from the fund.
If the money is in an irrevocable burial trust contracted on July 16, 1982, or later, it is not considered an available resource. According to Nebraska law, an individual is allowed to deposit funds up to $3,000 in an irrevocable trust fund created for the purpose of a prearranged funeral plan.
Therefore, the value up to $3,000 of an irrevocable burial trust and any accrued interest or dividends on that amount, if irrevocable, are considered unavailable and are disregarded.
An irrevocable burial trust fund must be deposited with a financial institution. For burial trusts contracted on December 31, 1986, or earlier, a written copy of the contract for a prearranged funeral plan must be on file with the financial institution. For burial trusts contracted on January 1, 1987, or later, a written copy of the contract may be retained by the client or the funeral home.
In determining whether the value of a burial fund contracted in Nebraska is considered available, the worker verifies the terms of the contract with the financial institution. The worker determines also if the contract stipulates that the interest or dividends are irrevocable. If a burial fund is drawn up in another state, the worker verifies the contract terms and determines whether that state allows irrevocable burial funds or whether the value of the fund is available to the client regardless of the contract terms.
(8/29/88)
Questions regarding burial funds contracted outside Nebraska should be sent along with a copy of the contract to the Central Office, Attention: Public Assistance.