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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 38 o Acknowledgement of the penalty clause; and o Acknowledgement of the reporting requirements. 18.2.1. Length of Designation Once a fund is designated, it remains a burial fund until: • Eligibility terminates; or • The individual uses the funds for another purpose. 18.2.2. Redesignation of FundsAfter Misuse If burial funds are used for another purpose, a redesignation of the remaining funds will be necessary. Obtain a new designation statement. 18.3. Funds Used For Another Purpose Use of excluded burial funds for a purpose other than the burial arrangements of the individual or the individual's spouse for whom the funds were set aside, is considered misuse. Misuse of excluded burial funds may result in a penalty. • Transferring excluded burial funds from one form to another (e.g., from a certificate of deposit to a burial contract) is not use for another purpose. • Use of a burial fund as collateral for a loan is use for another purpose because the loan creates an encumbrance on the funds. Since the funds are not available for the individual's burial as long as they are encumbered, the funds cannot be considered as a set aside for the individual's burial. This is true even if the loan is used for burial purposes. • A loan against the cash surrender value (CSV) of a life insurance policy that has been designated for burial expenses is not used for another purpose if the loan is for the purchase of another burial fund. 18.3.1. Penalty — Funds Used For Another Purpose With the exception noted below, if an individual uses excluded burial funds for a purpose other than the burial arrangements of the individual or the individual's spouse for whom the funds were set aside, the amount of excluded funds used will be withheld from future AG benefits. Excluded funds include the excluded accumulated interest earned on the excluded funds.