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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 11 Burial plots are real property (if a single individual has two burial spaces, but no family member to which he may designate the second burial space). Burial Reserves Resource Type 1. Burial Reserve
Individuals and their spouses are each allowed a $1,500 resource exclusion for funds set aside for burial expenses. This exclusion is separate from, and in addition to, the burial plot exclusion. Funds allowed to be excluded under this provision include certain otherwise countable resources. These resources must be separately identifiable and set aside for burial expense, and they may not be commingled. To determine the amount of the burial reserve, the maximum $1,500 that may be excluded is first reduced by:
a. Life insurance, if the total value of all life insurance owned by the individual is $1,500 or less; and
b. Funds in an irrevocable burial agreement or contract (see above for irrevocable burial contract definition).
Any remaining amount of the reserve once the above reductions have been applied can be used to exclude other burial funds/expenses. Burial funds set aside for any relatives other than the individual and her spouse are not eligible for exclusion.
Burial funds must not be commingled with other resources. At application and redetermination, burial funds that are commingled with other resources will be counted unless the individual takes action to separate the burial funds.
If an impediment exists that prevents the separation of burial funds, the existing burial funds may be excluded if the individual remains otherwise continuously eligible for the exclusion.
2. Determining the Amount of the Reserve
Example: John owns life insurance with a total Face Value (FV) of $1,000 and an $800 savings account for burial. The value of the life insurance is excluded, and there is $500 remaining as the burial reserve.