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
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:
- Joint Account
- Trust Account with a funeral home
- Personal Funeral Trust Account (PFT)
- 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The amount that a funeral home can retain when a revocable pre-need burial contract has been revoked has been updated.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.
- Review this memorandum and the manual revision with appropriate staff.