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The following are not considered irrevocable burial trusts for Medicaid purposes. These are subject to the burial fund provisions described in SECTION 16.5.5 BURIAL FUNDS: • A revocable pre-need agreement with a funeral provider to purchase funeral or burial products and services • An irrevocable pre-need agreement with a funeral provider to purchase funeral or burial products and services, if the applicant or member has established a revocable trust to fund the burial agreement • A revocable or irrevocable trust account for burial purposes, established with the applicant or member’s own assets, that is not a pre-need agreement with a funeral provider 16.5.2 Burial Insurance A burial insurance policy is a contract whose terms preclude the use of its proceeds for anything other than the payment of the insured's burial expense. It is an insurance product sold by a state-licensed insurance company and is typically funded with an annuity or life insurance policy. The following are not burial insurance policies: • If a policy has CSV to which the member has access, the policy is life insurance, not burial insurance. • If a burial policy calls for any excess proceeds to be paid to a secondary beneficiary (other than the deceased person's estate), it is life insurance, not burial insurance. • Similarly, if a policy calls for the proceeds to be paid to a private party who is expected, but not legally required, to use the funds for the burial costs of the insured, the policy is life insurance. The ownership of the annuity or life insurance policy is irrevocably assigned by the policyholder to a funeral expense trust established by the insurance company. The trustee or trust administrator is required to pay all trust proceeds toward the policy holder's funeral expenses at the time of the policyholder's death. If a trust's proceeds exceed burial costs, the excess must revert back to the deceased person's estate. A burial insurance policy is unavailable if both the following are true: • It includes language that says it is irrevocable. • It states that all of the proceeds must be used for burial expenses. The purchase of a burial insurance policy that meets the above conditions is not a divestment because the purchaser is presumed to receive fair market value. 16.5.3 Life Insurance-Funded Burial Contracts A life insurance-funded burial contract involves a person purchasing a life insurance policy on his or her own life and then assigning, revocably or irrevocably, either the proceeds or ownership of the policy to a third party, generally a funeral provider. The purpose of the assignment is to fund a burial contract. Death benefits that exceed the actual costs of burial expenses must be paid to the insured’s estate or the insured’s beneficiary. A burial contract that is funded with a life insurance policy must be in writing and must contain all of the following: • Name of funeral home and the insurer.