Page 5

BAM 805 5 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

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

Michigan Department of Licensing and Regulatory Affairs and complying with the act. 6. Ten or more business days have passed since all parties signed the contract. The purchaser may cancel the contract during this period. The local office director or his designee is authorized to certify agreements irrevocable. Note: Prior to 1986 a funeral contract could be funded with a Certificate of Deposit (CD) held at a bank. These pre 1986 contracts can be certified as irrevocable. Allowable Principal Value The allowable principal value for a contract to be certified irrevoca- ble is calculated as follows: • The absolute maximum; see below. • MINUS the amount already assigned to pay the beneficiary’s funeral expenses under either: A life-insurance-funded funeral, or An annuity-funded funeral. Note: The DHS-8A asks for this information.

This deduction applies even if ownership of the life insurance policy or annuity contract has been irrevocably transferred to a funeral director, a trust or another person. This deduction applies regardless of the types of funeral goods and services covered by the assignment. • EQUALS the allowable principal value. Use the absolute maximum for the date the DHS-8A is received. The absolute maximum is: • $16,100 effective June 1, 2026. • $15,870 effective June 1, 2025. • $15,460 effective June 1, 2024. • $14,720 effective June 1, 2023. • $13,760 effective June 1, 2022. • $13,280 effective June 1, 2021.

loading…

Page 5

Official source

BAM 805 5 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

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

Michigan Department of Licensing and Regulatory Affairs and complying with the act. 6. Ten or more business days have passed since all parties signed the contract. The purchaser may cancel the contract during this period. The local office director or his designee is authorized to certify agreements irrevocable. Note: Prior to 1986 a funeral contract could be funded with a Certificate of Deposit (CD) held at a bank. These pre 1986 contracts can be certified as irrevocable. Allowable Principal Value The allowable principal value for a contract to be certified irrevoca- ble is calculated as follows: • The absolute maximum; see below. • MINUS the amount already assigned to pay the beneficiary’s funeral expenses under either: A life-insurance-funded funeral, or An annuity-funded funeral. Note: The DHS-8A asks for this information.

This deduction applies even if ownership of the life insurance policy or annuity contract has been irrevocably transferred to a funeral director, a trust or another person. This deduction applies regardless of the types of funeral goods and services covered by the assignment. • EQUALS the allowable principal value. Use the absolute maximum for the date the DHS-8A is received. The absolute maximum is: • $16,100 effective June 1, 2026. • $15,870 effective June 1, 2025. • $15,460 effective June 1, 2024. • $14,720 effective June 1, 2023. • $13,760 effective June 1, 2022. • $13,280 effective June 1, 2021.