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Chapter: 1600 Assets Program: MSSI, SFP 18

3. names of any joint owners; and 4. amount of the balance.

The current bank account statement or other statements from the facility are verification sources.

Verification of a time deposit certificate must include information on when the funds can be withdrawn and any penalties for early withdrawal. If the individual cannot provide this information, the eligibility specialist must request the information from the individual's financial institution. 1640.0507 Burial Contracts and Other Burial Assets (MSSI, SFP) This section provides information on burial related assets such as:

1. funeral agreements, 2. prepaid burial contracts, 3. irrevocable burial trusts, 4. burial exclusion policy, and 5. burial spaces.

Passages 1640.0509 through 1640.0517 discuss program specific policy in this area. 1640.0509 Prepaid Burial Contracts (MSSI, SFP) A prepaid burial contract (or special mortuary fund) is an agreement in which an individual prepays his burial expenses and the seller agrees to furnish the burial. Prepaid burial contracts should not be confused with burial insurance or burial trusts. The prepaid burial contract funds are not included as an asset if:

1. the contract cannot be liquidated without significant hardship to the individual; or 2. the contract seller refuses to revoke or liquidate the contract; or 3. the contract is irrevocable.

If the contract does not meet the above criteria, the amount the individual would receive by revoking or liquidating the contract, minus any penalties, is the amount included as an asset for the individual. 1640.0510 State Law Regarding Prepaid Burial Contracts (MSSI, SFP) State laws may impose varying types of conditions on burial contracts. Depending on the state in which the contract was made, there may be unique provisions for:

1. the process for revoking or liquidating prepaid burial contracts; 2. the conditions required before a burial contract can be revoked or liquidated; and 3. the conditions necessary for a contract to be defined as irrevocable.

Any Medicaid applicant may make an irrevocable contract and exclude this asset. District Legal Counsel may be consulted when it is necessary to determine if a contract is revocable. If the burial contract was purchased in another state, contact Headquarters to determine whether the contract is irrevocable. 1640.0511.01 Revocable Prepaid Burial Contract (MSSI, SFP) Contract provisions for a revocable prepaid burial contract may prohibit liquidation of the asset. The eligibility specialist must examine the contract and determine if it includes this type of provision.

The contract is not included as an asset if the individual would have to move out of state to liquidate the contract or if another person's consent is required and the person will not agree to liquidate the contract.