Step 3 of Burial Fund Exclusion (BFE) Determination

After life insurance policies (LI) and irrevocable burial agreements (IFB, AFB and IBA) have been evaluated for meeting the Burial Fund Exclusion (BFE), or if a client has none of those, the next step is to evaluate Revocable Burial Agreements (RBA) and Cremation Society Agreements (CSA).

Apply revocable burial agreements and cremation society agreements to the BFE of the person for whom the burial was purchased, in the order they were purchased, beginning with the earliest purchase date.

l  If a client has an RBA or CSA purchased for themselves and another household member has purchased an RBA or CSA for the client, review the client-owned RBA or CSA first, in the order of purchase. Once the client's RBA or CSA has been reviewed, evaluate others purchased for the client.

l  Any available amount of an RBA or CSA is counted toward the owner's asset limit.

1. Apply burial services to any remaining amount of BFE.

Reminder:  The BFE cannot exceed $1,500.

2. Subtract the amount of burial services applied to the BFE from the burial services total. The result is the remaining burial services.

3. Consider the amount of the remaining burial services available and count them toward the owner’s asset total.

Example:

Rohan has $500 of BFE remaining after Step 1 of Determining BFE and Step 2 of Determining BFE have been completed. He has an RBA with burial services totaling $2,600.

Action:

1. Apply $500 of the RBA $2600 burial services to the BFE. Rohan has met his BFE.

2. Subtract the $500 of services used to meet the BFE from the $2,600 of total burial services. The result is $2,100 of burial services remaining.

3. Consider the $2,100 of remaining burial services to be available and count the amount toward Rohan’s asset total.

Top of Page