The burial space exclusion does not apply. This is because the funeral provider has not received any payment and no purchase of burial spaces has been made. The provider has no obligation to provide any spaces until the individual dies and therefore no spaces are being held for the individual.

The burial funds exclusion may apply. The resource value of the burial contract is equal to the CSV of the life insurance policy, subject to the $1,500 burial funds exclusion.

A recipient has a burial contract funded by the revocable assignment of ownership of a life insurance policy. The face value of both the burial contract and the life insurance policy is $3,000 and the CSV of the life insurance policy is currently $1,700. The total resource value of the recipient's burial contract is equal to the CSV of $1,700.

The burial space exclusion does not apply to the recipient's contract (per SI 01130.425C.1.a in this section). However, we can exclude $1,500 of the CSV under the burial funds exclusion. The remaining $200 of the CSV will be considered a countable resource.

The burial space exclusion may apply, depending on the nature of the contract (SI 01130.400). Any portion of the contract that represents the purchase of a burial space has no effect on the burial funds exclusion.

The life insurance policy and the burial contract are not resources for SSI purposes because the SSI recipient no longer owns them. The face value of the burial funds portion of the contract (if any) offsets the $1,500 burial funds exclusion because the contract represents an irrevocable arrangement available to meet the individuals burial.

A recipient has made provision for their burial by irrevocably assigning ownership of a life insurance policy on their life to a funeral home to fund a burial contract. The face value of the life insurance policy is $3,000.

The burial contract identifies the purchase of $1,300 of burial spaces and $1,700 of burial funds. The $1,700 burial funds portion of the contract is not a resource, but, since the assignment of policy ownership is irrevocable, the $1,700 burial funds portion reduces the $1,500 burial funds exclusion so that the recipient may not have any other excluded burial funds. The $1,300 burial space purchase is not a resource either, but it does not reduce the burial funds exclusion.

The burial space exclusion does not apply to the CSV of the life insurance policy. This is because the funeral provider has not received any payment and no purchase of burial spaces has been made. The provider has no obligation to provide any spaces until the individual dies and, therefore, no spaces are being held for the individual.

The resource value of the burial contract is equal to the CSV of the life insurance policy. We treat the CSV according to the policy described in SI 01130.425D.1.c. in this section.

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  If the face value of all life insurance policies on the individual's life is $1,500 or less, we exclude the CSV under the life insurance exclusion (SI 01130.300C.2.).

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  If the face value of all policies exceeds $1,500, we treat the CSV of the policy according to the burial funds exclusion, if applicable. For instructions on the burial funds exclusion, see SI 01130.410.

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  A recipient has a $1,300 burial contract funded by the revocable assignment of the proceeds of an insurance policy on their life. The CSV of the policy is $1,000. If this is the only life insurance policy they own on their life, then the life insurance policy would be excluded under the life insurance exclusion and the burial exclusions would not apply.

  The life insurance policy's face value of $1,300 reduces the maximum $1,500 burial fund exclusion by that same amount. The recipient may have an additional $200 in excluded burial funds.

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  If the recipient has another life insurance policy on their life and the total face value of the two policies exceeds $1,500 (and, therefore, the life insurance exclusion does not apply), then the CSV may be excludable under the burial funds exclusion. No burial space exclusion applies per SI 01130.425D.1.a. in this section.

Examine the life insurance policy and document whether the ownership/ proceeds of the policy have been assigned (revocably or irrevocably) and, if so, to whom.

If ownership or proceeds of the life insurance policy have been revocably assigned, follow regular life insurance development procedures. (See SI 01130.300D for further development and documentation requirements.)

If ownership of the life insurance policy has been irrevocably assigned, apply the policy principles in SI 01130.425C.2. in this section to determine the policy's resource status.

If an insurance policy that funds a funeral arrangement is placed irrevocably in trust, apply the policy principles in SI 01130.425E in this section to determine the policy's resource status. Refer to any regional instructions regarding State law in this area.

In all cases, document the file with a copy of:

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  the life insurance policy;

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  the assignment; and

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  any other related documents.

If the insurance policy funding the burial contract is issued by a nonparticipating or stock company (and therefore does not pay dividends), you may be able to curtail development as to the policy's CSV. You can use the CSV chart attached to the policy instead of contacting the life insurance company. For more information, see SI 01130.300D.2.b.

Examine the burial contract and determine what items and/or arrangements have been contracted for. Document the file with a copy of the burial contract.