Page 104

exclusion for each spouse. ($1,500 - $650 = $850 remaining for burial exclusion for each spouse.) Total resources are reduced to $1,950 ($100 checking, $1,200 savings + $650 cash value from the policy on the granddaughter). e. A revocable change of beneficiary to a funeral home designates the policy for burial expenses, but it does not make cash surrender value unavailable to the a/b. After the $1,500 burial exclusion is used up, remaining cash surrender value counts. Count the excess cash surrender value amount at the point it is designated but ignore increases. EXAMPLE: Mr. Jones has a whole life policy with face value of $15,000 and no other burial assets. The current cash surrender value on the policy is $2,500. Mr. Jones has changed the beneficiary of the policy to be the local funeral home. The change is revocable. $1,500 of the cash surrender value of the designated policy can be excluded through burial exclusion, but the remaining $1,000 cash surrender value counts in resources. 5. Increases in Cash Surrender Value Ignore increases in cash surrender value of a policy(s) designated for burial unless: • A loan or withdrawal of cash surrender value occurs; or • At redetermination, the a/b has not designated the policy for burial; or • Client’s statement of cash surrender value was used to approve application (this is follow up after approval); 6. Verify Outstanding Loans/Withdrawals from Cash Surrender Value. a. An applicant may designate remaining cash surrender value for burial even if there is an existing loan on the policy or it is collateral on an outstanding loan. b. If a new loan/cash withdrawal occurs after designation for burial, designated status is lost. That policy cannot be re-designated for burial. Any cash surrender value remaining on that policy counts in resources at that time and in the future. Once the loan is paid off the policy can be re- designated. F. Dividend Accumulations or Cash/Funds Held in a Bank Account 1. These countable liquid assets may be used to: a. Purchase burial assets to reduce resources in any amount within the 45/90 day processing time; BUT 104