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DEDUCT FROM $1,500 BURIAL EXCLUSION (in the following sequence) IF REMAINING VALUE IS MORE THAN $1,500 (OR AMOUNT REMAINING IN BURIAL EXCLUSION) Value of Irrevocable Burial Arrangement Do not count excess as a resource. Face Value of Insurance which generates a CSV ($10,000 or less total face value) If total face value exceeds $10,000, go to next step. Reduces $1,500 exclusion Value of Revocable Burial Contract Count excess, ignore interest earned once designated and excluded at application. Cash Value of Life Insurance (total face value over $10,000) If total face value is $10,000 or less, go to next step. Count excess at application, ignore increases once designated for burial. Cash or Funds in a Bank Account, CD, stocks/bonds separately identifiable Count excess. If result is excess resources, a/b must reduce resources. H. Reduction of Resources Through Burial Expenditures An a/b with excess resources has the option to reduce resources by using excess liquid assets to obtain a burial asset which does not count in resources. Depending on the type of liquid asset the a/b must reduce, advise the a/b of the following methods to use excess liquid assets for burial costs: NOTE: The a/b must be expected to receive burial services equivalent to the dollar value of the burial arrangement. Evaluate for transfer of assets if it appears that assets have been transferred without equal compensation. 1. Purchase of an excluded burial asset, such as an irrevocable contract or single premium annuity using cash or other liquid asset; or by adding to the value of an existing irrevocable arrangement. 2. Changing a revocable contract to an irrevocable contract. 3. Filing a rider on an existing insurance policy, which irrevocably changes the beneficiary to a funeral home, or to the estate of the client for purposes of funeral expenses. 4. Absolutely assigning (change of ownership) whole life insurance to a funeral home in exchange for burial services. 5. Also inform the a/b or the representative that resource eligibility cannot begin until the day that resources are reduced to the resource limit for the budget unit. EXAMPLE: Application on 6/4. Total reserve is $1500 face value of life insurance and $2500 in savings. Applicant is ineligible until resources are reduced. An irrevocable contract for $2500 is purchased on 6/11. $ 1500 Burial exclusion 107