SI ATL01130.419 State Laws Governing Prepaid Burial Contracts - Atlanta Region
A. States where prepaid burial contracts are revocable by State law (with certain indicated exceptions)
The states listed below have laws that require prepaid burial contracts to be revocable. The buyer of such a contract is entitled to a refund upon application for such. Therefore, prepaid burial contracts in these states are to be considered resources. Develop the value of the resource per SI 01130.420E.
State law provides that contracts entered into April 20, 1982, or later, by applicants or recipients of SSI, AFDC, or Medicaid may be irrevocable; contracts before then are all revocable.
State Law specifies any contracts made June 16, 1966, or later are revocable, but any made before then may be irrevocable.
Kentucky House Bill 409, effective 7/1/92, adds that: The application for an irrevocable burial trust requires proof that the beneficiary has received, applied for, or intends to apply for SSI within thirty days of signing the contract. Failure to do so will cause the trust to be revocable. Also, the trust becomes revocable after the SSI recipient's entitlement has terminated (e.g., the reason for suspense has lasted twelve consecutive months).
The application form, “Irrevocable Funeral Trust Agreement (For State and Federal Entitlement Programs Only)”, does not contain all necessary elements of a valid written consent statement for the purpose of disclosing information. If the claimant wants SSA to disclose information, you must secure a separate release specifying the information to be disclosed and the name of the person to contact.
State law specifies that contracts entered into after June 22, 1982, may be irrevocable if the contract so provides; contracts before then are all revocable.
State law provides that contracts entered into after June 30, 1981, may be irrevocable if they contain certain statutorily mandated language. Contracts made prior to July 1, 1981, are all revocable unless a Tennessee court has been petitioned on or after July 1, 1981, to make them irrevocable.
Any questions on any of these States should be referred to the ARC, Program Operations and Systems (POS), for possible submission to the Chief Counsel, Office of the Regional Attorney.
B. States where prepaid burial contracts may be revocable or irrevocable depending upon terms of contract
In the States listed below, the existing laws are such that a contract may be either revocable or irrevocable. Examine and evaluate the contract. The contract itself should provide the necessary information to determine if it can be revoked or liquidated. If the contract is irrevocable or may not be liquidated under any circumstances, it is not a resource and no other development is needed. If the contract may be revoked or liquidated, it may or may not be a resource depending on the conditions for liquidation. Develop per SI 01130.420D.
State law specifies that contracts entered into on or after 7/21/89 may be irrevocable if the contract so provides; contracts before this date are all revocable.