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Title 8: Medicaid Page 96 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised September 13, 2024 Burial Contracts

Burial Contracts (Cont.) Burial Contracts

If the client has… Countable resource? Transfer of asset?

Irrevocable burial contract funded by:

 Revocable burial funds Yes No

 Irrevocable burial funds No See transfer of asset chart.

 Life insurance policy with funeral home as the beneficiary Do not count cash value, but count any accessible dividends as a resource. See transfer of asset chart.

 Life insurance policy irrevocably assigned to funeral home No See transfer of asset chart.

Burial funds may include annuity proceeds, a certificate of deposit, a bank account, or a trust at a financial institution.

If a countable resource: Exclude up to $1,500 for the client and up to $1,500 for the client’s spouse when funds are held in a separate account designated for burial purposes.

Burial Contracts – Transfer of Assets

Transfer of Asset Penalty Amount

Irrevocable burial funds not in a burial contract Yes Penalty is the amount of the irrevocable burial funds. If the client sets up an irrevocable burial contract, the transfer of assets penalty can be expunged as of the first of the following month.