TN 126 (09-24)

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 01130.410D).

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.

B. Procedure

See SI 01130.410F for posteligibility procedures.

C. Examples

1. Period of Suspension Began Prior to 7/11/90 But Ends 7/11/90 or Later

A recipient had been in suspense for 10 months (since 11/89). They were not in section 1619(b) status. In the month prior to suspension, their excluded burial funds totaled $1,800 ($1,500 plus $300 in accumulated interest). When they again become 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 the recipient's resources for 9/90, we can exclude the entire $1,875.

2. Period of Suspension Begins on or After 7/11/90

A recipient has an excluded burial fund of $1,785. In 10/90 they are ineligible due to excess income (N01). For the period 10/90 through 2/91 they are ineligible due to excess resources (N04). In 3/91, when they are again eligible, their 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 the recipient had used $50 of the burial account to buy groceries in 1/91, the exclusion would have ended effective 2/1/91 and they 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 they again become eligible for payment).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501130409
SI 01130.409 - Burial Funds Exclusion - Throughout a Period of Suspension - 09/19/2024
Batch run: 10/10/2024
Rev:09/19/2024