TN 36 (07-95)
SI 01130.409 Burial Funds Exclusion - Throughout a Period of Suspension
A. Policy — the exclusion
1. Effective Date
Effective for periods of suspension which end 7/11/90 or later the exclusion of burial funds and accumulated appreciation and interest continues throughout a period of suspension of payments to the recipient for up to 12 months. Individuals whose period of suspension ends 7/11/90 through 7/31 /90 (e.g., period of institutionalization ends 7/15/90) benefit from these rules for 7/90.
2. Non-Administrative Suspension
For purposes of the exclusion, “suspension” means any month(s) of nonpay for nonadministrative reasons (e.g., N02 (in a public institution) or N03 (not a resident of the U.S.)), provided the individual's eligibility hasnot been terminated.
3. Administrative Suspension
Administrative suspension (e.g., N20 (failure to confirm eligibility), S06 (address unknown) or S08 (representative payee development needed)) has no effect on applicability of the burial fund exclusion. A period of 1619(b) status is not considered as a period of suspension for burial fund purposes.
4. Termination of Eligibility
If the individual's eligibility has been terminated and the individual subsequently reapplies, the burial funds exclusion must be applied as if it had never existed before, i.e., subject to a $1,500 maximum and the provisions described above (including a new designation as discussed in SI 01130.410 D.).
5. Use of Funds During Suspension
This exclusion applies only if the excluded funds are not used for another purpose during the period of suspension. If any of the funds are used for another purpose during the period of suspension,the exclusion ends effective with the month following the month that the funds were so used. If this is the case, the exclusion must be reestablished as if it had never applied previously when eligibility for payment is reestablished. The penalty for use for another purpose does not apply if funds are used during a period of suspension.
6. Exclusion of Interest/Appreciation During Last Month of Suspension
We provide the exclusion of burial interest/appreciation during the last month of the period of suspension if the interest/appreciation would otherwise count (e.g., if prorated benefits are paid in the month of reinstatement). See SI 00830.501.
See SI 01130.410 F. for posteligibility procedures.
1. Period of Suspension Began Prior to 7/11/90 But Ends 7/11/90 or Later
Mr. Park had been in suspense for 10 months (since 11/89). He was not in section 1619(b) status. In the month prior to suspension, his excluded burial funds totaled $1,800 ($1,500 plus $300 in accumulated interest). When he again becomes eligible in 9/90, interest has increased the value of the untouched fund to $1,875. (Interest is paid quarterly; no interest was paid in August or September.)
Treatment - When we determine Mr. Park's resources for 9/90, we can exclude the entire $1,875.
2. Period of Suspension Begins on or After 7/11/90
Mr. Fred Gervin has an excluded burial fund of $1,785. In 10/90 he is ineligible due to excess income (N01). For the period 10/90 through 2/91 he is ineligible due to excess resources (N04). In 3/91, when he is again eligible, his excluded burial fund is now valued at $1,838.
Treatment - The whole burial fund,including interest earned, remained excluded during the period of suspension.
If Mr. Gervin had used $50 of the burial account to buy groceries in 1/91, the exclusion would have ended effective 2/1/91 and he would have to reestablish the exclusion as if it had never existed. The previously excluded interest would be a countable resource effective with the resource determination for 3/91 (the month he again becomes eligible for payment).