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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources
September 1, 2026 Division of TennCare 10 Example: Mrs. White has a burial contract funded by the revocable assignment of a life insurance policy. The FV of both the burial contract and the life insurance policy is $3,000 and the CSV of the life insurance policy is $1,700. The total resource value of Mrs. White’s burial contract is equal to the CSV of $1,700. The burial space exclusion does not apply to Mrs. White’s burial contract, but $1,500 of the CSV can be excluded under the burial reserve. Mrs. White has no other resources to apply to the burial reserve. The remaining $200 is a countable resource.
b. Irrevocable Assignment
The life insurance policy and the burial contract are excluded resources if the burial contract meets the criteria described in (1)(a) of this section. If the burial contract includes an FV for services (not burial spaces/plots) included in the contract, that portion of the contract may offset the burial reserve.
Example: Mr. Jones has irrevocably assigned ownership of a life insurance policy to funeral home to fund a burial contract. The FV of the life insurance policy is $3,000. The burial contract includes the purchase of $1,300 of burial space/plot and $1,700 of burial funds. The contract is an excluded resource, and the $1,700 in burial funds will be counted against any possible burial reserve exclusion (limit of $1500), so Mr. Jones may not have any other excluded burial funds.
Burial Plot and Space Resource Type Exclude the value of one burial space for each family member, e.g. spouse, child, parent, sibling) whether living in the home or not.
Burial plots and spaces include a burial plot, gravesite, crypt, mausoleum, niche or other repository for bodily remains. It also includes vaults, headstones, markers, plaques, containers, and arrangements for opening and closing the gravesite.