1030.020.00 Life Insurance, Pre-need (also known as Pre-paid) Burial Contracts, and Designated Burial Funds

1030.020.10.25 Irrevocable Pre-need Burial Contracts

IM-155 October 7, 2019

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 [1030.020.20 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.