Page 197

• The burial funds portion of irrevocably assigned LIFBC (see SECTION 16.5.3.1 IRREVOCABLE ASSIGNMENT OF LIFE INSURANCE-FUNDED BURIAL CONTRACTS) If the total value of the exemptions above is $1,500 or more, no additional burial assets are exempt. If the total is less than $1,500, subtract the total from $1,500. The result is the amount of the person's burial fund total that is exempted. Example 7: Mrs. Smith, who is 74 years old, applies for EBD Medicaid. She has a $1,600 savings account designated as a burial fund, a $1,300 irrevocable burial trust, and two life insurance policies. The combined face values of the life insurance policies total $900. The irrevocable burial trust is exempt. The life insurance cash values are exempt when the total of their face values does not exceed $1,500. $1,300 Irrevocable burial trust +900 Face value life insurance ____________________________ $2,200 The total is more than $1,500, so no portion of the burial fund (savings account) is exempt.

Example 8: This time, Mrs. Smith, in addition to her $1,600 savings account designated as a burial fund, has a $300 irrevocable burial trust and two life insurance policies with a combined face value of $900. $ 300 Irrevocable trust + 900 Face value life insurance __________________________ $1,200 The total is less than $1,500, so determine what portion of Mrs. Smith’s savings account can be exempted as a burial fund. $1,500 Maximum burial fund exclusion - 1,200 _______________________________ $ 300 Mrs. Smith can exempt $300 from her savings account as a burial fund. The remaining $1,300 is an available asset. Anyone claiming a burial fund must sign a statement identifying the fund's location, type, amount, and account number. The statement must specify the month and year in which they first intended to set the fund aside for burial. The fund can be excluded retroactively back to the first day of the specified month, but no earlier than November 1, 1982. It loses its exemption if it is used for anything other than the person's burial. The fund set aside for burial must be identifiable, but not necessarily segregated, from other funds. 16.5.6 Wisconsin Funeral Trust Program The Wisconsin Funeral Trust is a single trust owned and operated by the WFDA. It was established and maintained according to the rules of the Wisconsin Department of Financial Institutions. It is available for use by all WFDA members statewide. Funds placed in the Trust will be invested in accordance with applicable state law. WFDA has created two preneed funeral contracts: one is for a guaranteed price and the other is for a non-guaranteed price. These contracts are available to all individuals, not just those who are or may be EBD Medicaid applicants or members.