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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 12 $1,500 Maximum Burial Reserve – $1,000 FV of Life Insurance Policy $500 Amount of Remaining Burial Reserve

The $500 burial reserve is applied to his burial savings account, and the remaining $300 in the designated burial savings account is a countable resource. The value of any burial funds in excess of the $1,500 maximum is a countable resource.

$1,800 Total Value of all Burial Assets – $1,500 Maximum Burial Reserve $300 Countable Asset

3. Treatment of Excluded Value

Interest earned on excluded burial funds is excluded as long as the individual remains continuously eligible for TennCare Medicaid. If an individual’s eligibility is terminated, and she later applies for benefits, the full value of the asset (including interest) must be considered when evaluating for a burial exclusion.

The value of the burial reserve loses its exclusion if any portion of the principal and accrued interest is used for any other purpose than to meet the individual’s burial expenses.

Burial Trusts

Resource Type A burial trust is a trust established by an individual for the purposes of setting aside funds or payment of burial expenses for the individual or someone else. A burial trust is a trust established with the individual’s assets. It may be a revocable or irrevocable trust.

Note: It is important to determine whether the trust was established with the individual’s assets or with funds that have been irrevocably paid to the funeral provider. If it is the latter, then that trust is subject to the policies in the Burial Contracts, section (1)(a).

All funds in a burial trust, established by an individual, including interest payments, are excluded if the value of the trust does not exceed $6,000 per individual. Interest payments and cost of transport which cause the trust value to exceed $6,000 are also excluded. This applies to both irrevocable and revocable burial trusts.