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7. Follow the steps in B. - F. below to use the burial exclusion. Always deduct the value of burial assets until the burial exclusion is depleted (you reach zero dollars) or all assets have been deducted. Deduct assets in the following order: a. Irrevocable Burial Arrangements b. Face Value of Life Insurance if total face value is $10,000 or less. c. Revocable Burial Arrangements d. Cash Surrender Value of Life Insurance if total Face Value Exceeds $10,000 e. Dividend Accumulations or Cash/Funds in a Bank Account Refer to G. below for instructions in applying the burial exclusion. B. Irrevocable Burial Arrangements Follow these steps for each individual to determine if there is an irrevocable arrangement as specified in 1, 2, or 3 below. Deduct any irrevocable burial arrangement from the person’s $1,500 burial exclusion. 1. Irrevocable trust/contract A trust, contract, insurance policy or annuity with a funeral home, bank, insurance company, etc. that lists the a/b or financially responsible spouse/parent as the beneficiary. a. Irrevocable means neither the depositor/purchaser nor the funeral home/bank can withdraw the funds or change the contract. NOTE: Even though a court, including a magistrate, can revoke an irrevocable contract, the contract remains irrevocable and is excluded until it is revoked. b. View a copy of the contract to verify that it is irrevocable, the name of the beneficiary and the face value received in exchange for funds. c. Do not require that the contract include a listing of goods and services to be provided unless the information is needed for evaluation for transfer of assets (MA-2240, Transfers of Assets) if it appears assets may have been transferred without equal compensation. 2. Irrevocable designation of beneficiary This is an irrevocable designation of an insurance policy making it payable to a funeral home or to the estate of the deceased for purposes of funeral expenses. 99