2-009.07A3c Money Designated for Burial
Up to $1,500 may be disregarded for each individual if it is set aside for the purpose of paying burial arrangements for the individual or the individual's spouse. This exclusion is in addition to the burial space exclusion. This exclusion is not in addition to a burial trust or burial insurance that has been irrevocably assigned.
The $1,500 must be reduced by subtracting:
1. The face value of whole life insurance policies owned by an individual if the cash surrender value of the policies have been excluded from resources; and/or
2. The amount(s) set aside in an irrevocable trust or other irrevocable agreement available to meet funeral expenses.
Exception: Any amount designated solely for burial space items either in an insurance policy or a trust (revocable or irrevocable) is not subtracted from the $1,500.
The funds set aside for burial arrangements must be kept separate from other funds. If the funds are not segregated from other resources, the exclusion does not apply to any of the resources. Burial funds that are combined with other resources are treated as non-excluded resources.
Interest earned on these excluded burial funds and appreciation on the value of the funds are excluded from resources if left to accumulate and become part of the separate, identified burial account.
These funds are no longer considered as funds designated for burial if any of the principal or interest is withdrawn. If the worker verifies that withdrawals have been made, the remainder is considered a resource.
Exception: If the client has an account that is funded by insurance that is specified for burial space items, any remainder continues to be disregarded if the client withdraws funds from the account.