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• Statement of funeral goods and services. • Effect of canceling or surrendering the insurance policy. • Effect of changing the assignment of the policy proceeds. • Nature and extent of any price guarantees for goods and services. The assignment option (revocable or irrevocable) chosen by the customer impacts the determination of countable asset and/or divestment amount. 16.5.3.1 Irrevocable Assignment of Life Insurance-Funded Burial Contracts An irrevocably assigned LIFBC is an unavailable asset because the member no longer owns it. If a member has chosen irrevocable assignment of his or her LIFBC, the burial space exemption (see SECTION 16.5.4 SPACES) may apply, depending on the nature of the contract. Any portion of the contract that represents the purchase of a burial space is exempt and has no effect on the burial funds exclusion (see SECTION 16.5.5 BURIAL FUNDS). If the face value of the burial funds portion of the contract exceeds $1,500, it offsets the burial fund exclusion described in SECTION 16.5.5 BURIAL FUNDS. If the face value of the burial funds portion does not exceed $1,500, determine the CSV of the LIFBC at the time that it was assigned and proceed in the following order: 1. Apply the CSV to burial spaces. 2. Apply the burial fund logic described in SECTION 16.5.5 BURIAL FUNDS to any remaining CSV. 3. Apply the CSV to any itemized goods or services, not accounted for by 1. and 2. above, purchased at fair market value. 4. Any remaining CSV must be evaluated for divestment (see SECTION 17.2.7.15 REVOCABLE TRUSTS). Example 1: Mr. Atkins has irrevocably assigned the ownership of his life insurance policy to a funeral home to fund a burial contract. The face value of the LIFBC is $3,000. The Statement of Funeral Goods and Services shows $3,000 for the pre-arrangement of the funeral, of which $1,300 is designated for a casket and $1,700 for funeral expenses (services and cash advances for such things as flowers and the obituary). The $1,700 funeral expense portion reduces the $1,500 burial fund exclusion (see SECTION 16.5.5 BURIAL FUNDS), and so $1,500 of this LIFBC will be considered his exempt burial fund. The $1,300 casket does not reduce the burial fund exclusion (see SECTION 16.5.5 BURIAL FUNDS) and is not a countable asset because it is a purchase of a burial space.

Because the LIFBC was assigned irrevocably, determine if Mr. Atkins is receiving other goods or services at fair market value for the remaining $200 designated for funeral expenses. If he is not receiving goods or services at fair market value, the remaining $200 is evaluated for divestment (see SECTION 17.2.7.15 REVOCABLE TRUSTS). If the face value of the LIFBC exceeds the total amount shown on the Statement of Funeral Goods and Services, determine the cash surrender value (of the LIFBC at the time that it was assigned) and apply the divestment policy (see SECTION 17.13.2 REVOCABLE TRUSTS). Any portion of an irrevocably assigned LIFBC for which no goods and services are received at fair market value is the divested amount. Example 2: Mr. Atkins has irrevocably assigned the ownership of his life insurance policy to a funeral home to fund a burial contract. The face value and the cash value of the LIFBC is $3,200. The Statement of Funeral Goods and Services shows $3,000 for the pre-arrangement of the funeral. A divestment in the amount