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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 27 2008 the principal sum may not exceed $15,000. Irrevocable trusts established under Title 5, Chapter 34 of the Delaware Code must contain the following mandatory provisions. 11 DE Reg. 1051 (02/01/08) 20340.5.1 Irrevocable The trust must include a provision which expressly identifies the trust as irrevocable for the lifetime of the beneficiary. 20340.5.2 Alternative Disposition The trust must include a provision for the alternative disposition of trust funds upon discontinuation of business or inability to provide goods or services in accordance with the terms of the trust. 20340.5.3 Inadequate Funds The trust must include a provision which sets forth that in the event funds paid into the trust are inadequate, at the time of the death of the beneficiary, to cover anticipated funeral expenses, the trustee shall contribute all trust funds toward payment of the actual funeral expenses for the funeral of the beneficiary. 20340.5.4 Excess Funds The trust must include a provision which sets forth that in the event the sum held by the trust exceeds the total actual costs of the goods and services for the funeral of the beneficiary, the excess funds shall be paid to the estate of the beneficiary. 20340.5.5 Contributions to Trust The trust must include a provision which sets forth that the trustee may, from time to time, accept periodic monetary contributions to the trust, provided that the principal sum contributed, exclusive of interest earned, shall not exceed $15,000.00. 11 DE Reg. 1051 (02/01/08) 20340.5.6 Maximum Amount The trust must include a provision which shall state "In no event shall the principal amount of the trust exceed $15,000.00 plus interest". Once an irrevocable trust is executed in conjunction with a burial contract, the funds are not available to the buyer. Any written request for a refund of money is no longer an option. The irrevocable trust arrangement will offset the $1500 burial allowance. This is effective for irrevocable trust arrangements executed on or after January 30, 1992. 11 DE Reg. 1051 (02/01/08) 20340.6 Burial Funds in Excess of $1500 Upon application, any burial funds which exceed $1500 must be counted toward the recipient's $2000 resource limit. Mrs. Jones has a prepaid burial contract of which $2000 is countable and no life insurance. $2000 countable prepaid burial contract -$1500 burial exclusion = 500 countable resource The excess $500 must be counted toward her resources. As long as her total resources (including the excess $500) do not exceed the current applicable SSI resource limit, the recipient would remain eligible. 20340.7 Use of Burial Funds After Designation Any designated burial funds used for another purpose will be counted as income in the month withdrawn. The penalty for using excluded burial funds for some other purpose applies only to those whose resources would have been over the limit without benefit of this exclusion. The budgeting of this additional income could result in the recipient exceeding the monthly income limit. As a result, Medicaid benefits would be terminated. 20340.8 Interest on Burial Funds and Burial Spaces Interest and other accruals on the $1500 burial funds and spaces is excluded from countable income and resources. Interest on and appreciation in value of an excluded burial fund are excluded if left to accumulate and become part of the excluded fund. In the event the recipient loses Medicaid eligibility, the appreciated value (accrued interest) will be counted toward the resource limit upon reapplication. 20340.9 Funds Added to Existing Burial Accounts