BURIAL FUND (MAM)

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A burial fund is any separately identifiable fund that has been designated for burial expenses, such as a burial contract, burial trust, or burial arrangement.

A burial contract is a written agreement between an individual and a business engaged in providing funeral services to pay for the individual's funeral and burial expenses.

Consider only those burial funds that are accessible to the household. Irrevocable burial contracts, for example, are considered inaccessible resources. Consider a life insurance policy a burial fund if the funeral director is the beneficiary of the policy and the policy is used as payment of a burial contract. If the funeral director is not the beneficiary of the policy, the policy is treated as life insurance. See Inaccessible Resources and Life Insurance.

Treatment:  For the adult categories: Countable Resource (See also Burial Fund Exclusion)

  For the FANF and FANF-related categories: Exclude one burial contract for each assistance group member, up to $1,500. Count the portion of the

equity (cash surrender) value which exceeds $1,500 as a resource unless the value of the resource is otherwise excluded by policy.

Exception: Treat irrevocable burial trusts as inaccessible excluded resources as long as there is a signed contract with the funeral home and the principal of the trust does not exceed the contracted amount.