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2615.20.00 BURIAL RELATED RESOURCES Burial related resources include various methods for reserving funds for burial such as prepaid funeral agreements, funeral trusts, life insurance, and burial accounts on deposit in financial institutions. Each assistance program has specific requirements in regard to burial related resources. 2615.20.05 BURIAL ACCOUNTS (MED 1, 4) A burial account refers to a revocable account in which funds are identified to be used for burial purposes. In order for funds or assets to be considered set aside for burial, the account titling must indicate such, or there must be a signed statement by the owner or guardian of the purpose for the funds and the date on which they were set aside. This type of account is available to the owner. If a burial arrangement is irrevocable, it is not to be identified as a burial account. Refer to the following sections on funeral trusts and prepaid funeral agreements which are irrevocable. The policies contained in this paragraph apply to the MA A, MA B, and MA D categories of assistance, in the circumstance of an individual or an institutionalized spouse/community spouse. For each individual or spouse, up to $1,500 of any separately identifiable funds set aside and earmarked for burial in a revocable account are exempt, regardless of beneficiary designation.25 The $1,500 maximum must be reduced by the amount in an irrevocable burial trust or by the face value of any life insurance policies whose cash surrender value (CSV) has been exempted because the face value is $10,000 or less and the beneficiary is the estate or funeral home. Example: Mr. Jones is in a nursing facility. Mr. and Mrs. Jones each have a burial account valued at $1,500. Mrs. Jones also has a life insurance policy with a face value of $1,000. Only $500 of Mrs. Jones' burial account can be exempted. For QMB (MA L), QDW (MA G), SLMB (MA J), and QI (MA I) up to $1,500 of any separately identifiable funds in a burial account are exempt. The exemption applies to the applicant/recipient and to his spouse. The $1,500 maximum must be reduced by the amount in an irrevocable burial trust or any irrevocable prepaid funeral agreement. It must also be reduced by the face value of any life insurance policies whose cash surrender value has been exempted because the face value does not exceed $1,500 regardless of the beneficiary designation. 2615.20.10 FUNERAL PLANNING PROGRAMS (MED 1, 4) There are various methods by which an individual may reserve funds for burial, such as burial accounts, prepaid funeral agreements, funeral trusts, and life insurance. In evaluating any of these entities as resources, workers must carefully apply resource eligibility principles applicable to each program. In most situations, the determination of availability of funds reserved by any type of prepaid funeral arrangement will be based on whether the contract is revocable or irrevocable.