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BAM 805 1 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

DEPARTMENT POLICY Family Independence Program (FIP), State Disability Assistance (SDA) and Medicaid (MA) Only Michigan law allows a person to contract and pay in advance for a funeral. This is called a prepaid funeral contract; see BEM 400. In this item, the act refers to MCL 328.211. General provisions of the act are as follows: • The contract seller is the person/establishment providing the prepaid funeral contract. The seller may be the funeral provider. • The funeral provider is the person/establishment shown in the prepaid funeral contract as agreeing to furnish specified funeral goods and/or services. The provider need not be a party to the contract. • Contract sellers and funeral providers must be registered with the Michigan Department of Licensing and Regulatory Affairs (LARA). • The purchaser, beneficiary, funeral provider and/or contract seller decide what funeral goods and services are contracted for. • Only a guaranteed price contract may be certified irrevocable. • Only the Michigan Department of Health and Human Services (MDHHS) may certify a funeral contract irrevocable by completing a DHS 8-A, Irrevocable Funeral Contract Certification. • Amounts paid for contracted funeral goods and services may be reallocated to other funeral goods and services. However, an irrevocable contract cannot be terminated. • Interest or dividends earned on an irrevocable contract fund are considered part of that fund and may not be given to the purchaser/beneficiary.

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Official source

BAM 805 1 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

DEPARTMENT POLICY Family Independence Program (FIP), State Disability Assistance (SDA) and Medicaid (MA) Only Michigan law allows a person to contract and pay in advance for a funeral. This is called a prepaid funeral contract; see BEM 400. In this item, the act refers to MCL 328.211. General provisions of the act are as follows: • The contract seller is the person/establishment providing the prepaid funeral contract. The seller may be the funeral provider. • The funeral provider is the person/establishment shown in the prepaid funeral contract as agreeing to furnish specified funeral goods and/or services. The provider need not be a party to the contract. • Contract sellers and funeral providers must be registered with the Michigan Department of Licensing and Regulatory Affairs (LARA). • The purchaser, beneficiary, funeral provider and/or contract seller decide what funeral goods and services are contracted for. • Only a guaranteed price contract may be certified irrevocable. • Only the Michigan Department of Health and Human Services (MDHHS) may certify a funeral contract irrevocable by completing a DHS 8-A, Irrevocable Funeral Contract Certification. • Amounts paid for contracted funeral goods and services may be reallocated to other funeral goods and services. However, an irrevocable contract cannot be terminated. • Interest or dividends earned on an irrevocable contract fund are considered part of that fund and may not be given to the purchaser/beneficiary.