*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***
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Effective: December 1, 2006 |
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19.30.20 - Step 4 of Burial Fund Exclusion (BFE) Determination |
Archived: June 1, 2016 (Previous Versions) |
If, after Steps 1, 2, and 3, the client has BFE remaining, other assets can be designated toward it. This is especially helpful when a client has excess assets; it is a means to reduce those assets.
These other assets must be liquid assets and include:
l Accounts.
l Securities.
l Retirement Funds.
l CSV of Life Insurance.
l Other liquid assets.
The client must provide a written statement that the asset has been designated for burial and will only be used as such.
l The designation must be reviewed at each renewal.
l If the client has used the designated asset for a purpose other than burial, the asset can no longer be excluded as part of the BFE.
Other designated assets must be kept separate from other assets to be excluded.
l Do not require clients to separate burial funds from other assets if there are circumstances beyond their control which makes it impractical or requires the consent of non-household members who refuse to cooperate.
l Document the specific reason why the burial assets cannot be separated.
Example:
Marlys has an LI policy with a FV of $4,000 and CSV of $3,500. Because the FV is greater than $1,500 she cannot designate it to the BFE. She has no other burial assets. Marlys chooses to designate $1,500 of the $3,500 CSV.
Action:
It would be impractical for Marlys to separate the portion of the CSV used toward the BFE. She would have to borrow from the policy and pay interest to separate it. She meets the BFE with $1,500 of CSV designated, the other $2,000 is counted toward her asset total.
Example:
Elroy has used $1300 of his BFE in Steps 1, 2 and 3 and has no other burial assets remaining. He is over assets by $100, and he has a savings account with $600 in it.
Action:
Elroy’s worker tells him that he is over assets but can reduce them by designating up to $200 to the BFE. The worker also tells Elroy that if he chooses to use up to $200 from his savings account he must separate those funds into their own account. Should Elroy choose to reduce his assets in the manner he must provide a written statement that the separated account is designated for burial.
Example:
Helen owns two non-term LI policies with a total FV of $2,500 and total CSV of $1,200. She owns no burial funds and has not designated either policy to a funeral provider.
Action:
The LI FV exceeds $1,500, therefore the FV cannot be applied to the BFE. Helen may choose to designate the CSV to the BFE. She would have $300 left of the BFE and could choose to designate other liquid assets she owns.