Missouri Law was revised effective August 13, 1982 (RSMo 436.010 – 436.080) to allow participants to set aside money in an irrevocable pre-need burial contract. The law states the purchaser can irrevocably waive and renounce the right to cancel their pre-need burial contract. Once the contract is made irrevocable, the claimant may never regain control of this money. The request to make the pre-need contract irrevocable must be made in writing with the funeral home.
NOTE: The option to make the contract irrevocable can be applied to all pre-need burial contracts which were already in effect on August 13, 1982.
Do not consider this change as a transfer of property because it is assumed fair and valuable consideration will be received upon the person’s death.
A claimant may set up an irrevocable pre-need burial contract in any amount. The face value is the actual value or purchase price of the pre-need burial contract. The face value of the irrevocable agreement is not an available resource.
The $1500 cash surrender value (CSV) exemption is applied against the amount of the face value of the irrevocable pre-need burial contract, even though the contract cannot be surrendered.