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BAM 805 4 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

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

Note: Someone else may act as purchaser for a living beneficiary if the beneficiary’s own money is used. The beneficiary’s name must follow the person's signature on the DHS-8A (for example, John Smith for Sara Smith). 3. MDHHS has a copy of the contract. 4. The principal value(s) (such as amount paid at the time the contract was made, excluding interest or dividends) is not over the Allowable Principal Value explained below. • A revocable contract(s) with a principal value over the maximum may be ended and a new contract made which can be certified irrevocable. The excess, including interest and/or dividends, is a countable asset. • Multiple contracts for a beneficiary may be certified irrevocable if the combined principal values are not over the maximum. Note: The limit is not affected by the types of goods and services contracted for. For example, the value of burial space items is not deducted to decide if the principal value is within the limit. 5. Sections I and II of the DHS-8A are properly completed. This ensures the following: • The purchaser/beneficiary has notice of limits on state liability for additional funeral expenses. Covered expenses are included in ERM 306. • The purchaser/beneficiary has notice that an irrevocable contract remains irrevocable even if assistance ends. • The contract seller asserts that the contract is a guaranteed price contract and complies with the act. • The contract seller is registered with the Michigan Department of Licensing and Regulatory Affairs (LARA). Note: An employer's registration covers his employees. The employer's registration number may be entered in Section II of the DHS-8A. • The contract seller certifies that all funeral providers listed in, or party to, the contract are registered with the