TN 36 (07-95)

SI 01130.412 Burial Funds Exclusion - Periods Prior to April 1, 1988

A. Policy

1. General

The resources (and income) exclusions related to burial funds were the same prior to April 1, 1988 as for the period April 1, 1988 through July 31, 1990 with the exception described in 2. below.

2. Exception: Applicability of Exclusion

Prior to April 1, 1988,the burial funds exclusion can apply only if counting any portion of the funds to be excluded would cause resources to exceed the limit.

3. Use for Another Purpose

Without the circumstance described in 2. above, there is no exclusion. If there is no exclusion, there can be no penalty for using designated funds for another purpose.

B. Procedure — initial claims

1. When to Ask About Burial Funds

Inquire about funds set aside for burial only if:

  • the individual appears to be eligible except for having excess resources; and

  • the excess is no more than $1,500.

2. Funds Designated

If an individual alleges having funds set aside for burial, develop as outlined in SI 01130.410 E. Apply the exclusion only if it would result in eligibility.

C. Procedure — posteligibility development and documentation

1. General

Follow the guidelines in SI 01130.410 F. Disregard provisions that apply only after 8/1/90.

2. Additional Concern

In addition to 1. above, be certain that you apply the burial funds exclusion only for months when counting any portion of the funds would result in excess resources (see A.2. above).

3. Interest Income

If the resources exclusion does not apply for any month(s) in the period of review, do not apply the income exclusion for interest earned on designated funds for such month(s).

4. Loss of Exclusion

Do not apply the burial funds exclusion for any month in which:

  • resources (including designated burial funds) no longer exceed the applicable resources limit; or

  • the individual is ineligible for any reason, including having excess resources despite benefit of the burial funds exclusion.

5. Exclusion Regained

If an individual loses the exclusion for one or more months, redevelop its applicability as you would for an initial claim. This includes the renewed application of the $1,500 limit. Do not exclude any amount beyond that limit, even if a larger amount had been excluded previously.

6. Use for Another Purpose

Follow SI 01130.410 G. if an individual:

  • has used funds for a purpose other than that designated; and

  • as of the first moment of the month in which such use occurred, would have been ineligible without benefit of the burial funds exclusion.

D. Example — change in amount of burial funds

1. Situation

Mrs. Stanley, an SSI recipient, has $1,200 excluded from resources as set aside for burial as of June 1987. The funds earn interest, which is allowed to accumulate as part of the principal and is excluded from income and resources.

During the course of a redetermination initiated in September 1989, the CR determines that Mrs. Stanley's total resources, including burial funds, had dropped below the applicable limit as of December 23, 1987. In March 1988, Mrs. Stanley had a family emergency and withdrew $500 of her excluded funds to pay the unexpected bills.

2. Treatment

  • Effective with the resources determination for January 1988, the burial funds exclusion does not apply to Mrs. Stanley. Therefore, the $7 a month in interest earned by the funds, even though left to accumulate with the funds, is not excludable for January through March.

  • Since the exclusion did not apply in March, the fact that Mrs. Stanley spent $500 in previously designated funds does not result in a penalty.

  • As of April 1, 1988, Mrs. Stanley is entitled to the burial funds exclusion regardless of whether it is needed to prevent excess resources.