Enter Burial Funds

Also See:

EA Policy Manuals E.A.R.L

Although the entire value of 'burial insurance-irrevocable' is excluded it must be entered in order to run the rules on the $1500 disregard for 'account designated for burial'.

Note: $1500 disregarded account is a very rare occurrence.

The entire value of 'contract for burial space items' is excluded and it is NOT needed to run the $1500 disregard for 'account designated for burial' so it does not have to be entered.

The original value of 'burial trust-irrevocable' must be entered without the addition of any interest or dividends that have accumulated which are irrevocable', or the total value can be entered and the amount of any accumulated irrevocable interest/dividends can be entered as an encumbrance.

If an 'account designated for burial' is entered, it is treated like a savings/bank account and the entire value is considered when determining resource amounts.

Excluded Burial Resources 469 NAC 2-009.07A3ff

If the type code is 'burial space or lot' and there is a 'exclusion/disregard reason' of 'designated for family member AABD, ADC, MED' the burial space is excluded from the eligibility determination. These will be displayed on Benefit Summary resource detail under Excluded Resources.

If the type code is 'contract for burial space items' the resource is excluded.

If the type code is 'burial insurance-irrevocable' (new) the resource is excluded.

Determining Disregard Amounts 469 NAC 2-009.07A3ff

If the type code is 'burial trust-irrevocable' up to the first $4683 of value is disregarded (subject to increase every September).. If the person owns more than one 'burial trust-irrevocable' apply the $4683 disregard to the first instance. If there is a second instance and the disregard for the first instance was less than $4683 the difference may be disregarded from the second, etc.

Note:  There must be an itemized worksheet for any total prepaid burial exceeding the current burial trust-irrevocable amount.

Example:

Mrs. Jones has two irrevocable burial trust funds. One for $2000 and one for $1500. The disregard would first be applied to the $2000 fund leaving a disregard balance of $1000 (3000 disregard max - 2000 used). The $1000 disregard balance would be allowed against the $1500 fund. The second fund would then have a countable value of $500.

If the type code is 'burial trust - revocable' (new) or 'burial insurance-revocable' (new) or 'account designated for burial' (new) up to the first $1500 of value is disregarded and the value is $1500.00 the entire $1500 may be disregarded. If the value is greater than $1500 the entire value is counted as a resource with no disregard. If applicable, the $1500 disregard amount is reduced by the amount of some burial resources the person already owns. The value of burial resources that would be deducted from the $1500 disregard amount are 'burial insurance irrevocable', 'burial trust-irrevocable', 'burial trust-revocable', 'burial insurance-revocable', account designated for burial'. , before the $3000 is applied to them. This $1500 disregard must also be reduced by the face value of all 'whole life insurance' (WL) policies owned by the person and before any disregard is applied to them, which was determined in Determine Liquid Resources. If the person owns more than one 'burial trust - revocable' (new) or 'burial insurance-revocable' (new) or 'account designated for burial' (new) apply the $1500 disregard to the first instance. If there is a second instance and the disregard for the first instance was less than $1500 the difference may be disregarded from the second, etc

Example:

Mrs. Brown has a $1000 account designated for burial. She has face value of whole life insurance of $500 and an burial fund-irrevocable of $1000 and a contract for purchase of burial space items of $1000. The disregard for the account designated for burial is calculated as follows:

Potential Disregard of Account Designated for Burial

   $1500

Minus Burial Trust-Irrevocable

- $1000

Minus Whole Life Insurance Face Value

- $ 500

Available Disregard

  $ 0

 

Note:Although the countable resources value will be identified for each person, for purposes of displaying the Benefit Summary a resource that is owned by more than one person with a role in the AABD/MED case should only be displayed once with the total countable value for all persons. (This is how the system currently displays it.)

(12-2015)