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Title 8: Medicaid Page 98 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 – Transfer of Assets

Transfer of Asset Penalty Amount

 More than the average Iowa funeral cost, ask for an itemized list of funeral costs.

• If burial contract amount is less than or equal to itemized list. No None

• If amount exceeds the itemized list. Yes Penalty is the amount in excess of the burial contract. Burial Funds 20 CFR 416.1231 (See also Transfer of Assets. 20 CFR 416.1246, 42 USC 1396p(d)) 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. Examples of funds set aside for burial are:  Revocable burial contracts.  Trusts.  Cash value of any life insurance policies.

 Any account or resource designated by the applicant or member for burial, cremation, or other funeral arrangements. An account or resource designated for burial could be bank accounts, CDs, etc.

Burial funds must be in separately identifiable accounts. If funds are combined with other funds that are not for burial purposes, the client must separate the funds.

The client must sign a statement designating the funds for burial purposes. File a copy of the statement in the case record and give a copy to the applicant or member. Exclude the fund as of the first of the month in which the fund is separated and designated as a burial fund.