Irrevocable Burial Contract Example

The customer has irrevocably assigned ownership of a life insurance policy to a funeral home to fund a burial contract for himself. The equity value of the life insurance policy is $3,000.

The burial contract identifies the purchase of $1,300 of burial space items and $1,700 of burial services. Since the contract is funded by the irrevocable assignment of a life insurance policy it can be totally excluded. $1,300 is excluded as Burial Plot Items and $1,700 is excluded as an Irrevocable Burial Fund.