IM-153 October 7, 2019; IM-03 January 17, 2019
Participants can designate funds to be set aside for their future burial expenses.
If the total amount of the participant’s pre-need burial contracts, life insurance policies, and/or Personal Funeral Trust accounts do not exhaust the $1500 CSV exemption, the amount of the CSV exemption remaining can be applied to the Designated Burial Fund.
For the designated funds set aside for burial, an individual may designate more than the $1500 CSV exemption amount; however, no more than the CSV exemption amount may be excluded as an available resource.
NOTE: Designated Burial Funds should be coded in the electronic case record as a “Designated Funeral Fund.”
To designate a resource to be set aside for future burial expenses, obtain the participant’s signature on the Burial Fund Resource Designation form. The signed form must be received prior to the exemption being allowed.
EXAMPLE: Allen claims that a $1000 savings account is set aside for his future burial expenses. He signs the Burial Fund Resource Designation form. Mr. Allen also has a life insurance policy with a CSV of $1200. The life insurance CSV of $1200 is excluded as an available resource using the $1500 CSV Exemption. Therefore, only $300 of the savings account may be excluded using the CSV Exemption. ($1500 CSV exemption minus $1200 CSV from the life insurance policy equals $300). The remaining $700.00 in the savings account is considered an available resource.
Designated Burial Funds must be liquid assets with a definite cash value. Examples include bank accounts, stocks, bonds, or certificates of deposit.
Once a burial fund is designated by the participant’s signature on the Burial Fund Resource Designation form, all interest or increase in value, to the exempted portion of the fund is not considered an available resource from the date the participant becomes eligible for assistance.
Funds designated as set aside for burial must be separately identifiable and not co-mingled with other funds. For example, funds designated for burial cannot be included in a checking account that is used for other purposes.