IM-62 UPDATE TO MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) POLICY REGARDING PRE-NEED BURIAL CONTRACTS PURCHASED ON OR AFTER AUGUST 28, 2009

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Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri

TO:  ALL FAMILY SUPPORT OFFICES

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  UPDATE TO MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) POLICY REGARDING PRE-NEED BURIAL CONTRACTS PURCHASED ON OR AFTER AUGUST 28, 2009

MANUAL REVISION #27 

1030.020.10.15

DISCUSSION:

Policy regarding Pre-Need Burial Contracts purchased on or after August 28, 2009 has been revised.  Additional information has been added to distinguish between Personal Funeral Trust Accounts and funds held in a trust by a funeral home.

The four types of policies are:

  1. Joint Account
  2. Trust Account with a funeral home
  3. Personal Funeral Trust Account (PFT)
  4. Irrevocable Pre-Need Burial Contracts funded by a life insurance policy.

The amount that a funeral home can retain when a revocable pre-need burial contract has been revoked has been updated.  The provider can keep 15% of the funds that have been paid in for contracts funded by a joint account or a trust account with the funeral home. 

  • If revocable, 85% of the face value or 85% of the amount of the policy paid in thus far, will be a countable resource and considered for the Cash Surrender Value (CSV) Exemption.

NOTE:  Policy regarding irrevocable pre-need burial contracts has not changed.    

Please review MHABD Manual Section 1030.020.10.15 Agreements on or after August 28, 2009 for additional details.

 

NECESSARY ACTION:

  • Review this memorandum and the manual revision with appropriate staff.

 

KE/rr