2-009.07A3a Irrevocable Burial Trusts
If the money was put in an irrevocable burial trust 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 the specified maximum in an irrevocable trust fund created for the purpose of a prearranged funeral plan.
Therefore, the value up to the specified maximum of an irrevocable burial trust and any accrued interest or dividends on that amount, if irrevocable, are considered unavailable and are disregarded. The mortuary may retain an additional amount not to exceed 15 percent, but this amount must not be included in the burial trust.
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 shall verify the terms of the contract with the financial institution. The worker must determine also if the contract stipulates that the interest or dividends are irrevocable. If a burial fund is drawn up in another state, the worker mustl verify the contract terms and determine whether that state allows irrevocable burial funds or whether the value of the fund is available to the client regardless of the contract terms.
Questions regarding burial funds contracted out of state should be sent on Form ASD-17 along with a copy of the contract to the Central Office, Attention: Public Assistance.
2-009.07A3a(1) Interest on Burial Trusts
(7/10/2000)