Medicaid Policy                                                                 

591-2 Burial Space Exclusion

Effective Date: May 1, 2017

Previous Policy

 

Exclude fully paid burial spaces that the individual owns, regardless of value.  Also, exclude written agreements or contracts for the purchase of a burial space that the individual has paid completely.  

In both cases, the exclusion only applies to burial spaces the individual or spouse owns and intends to use for:

the individual,

the individual’s spouse, or

any of the following:

   a parent;

   minor or adult children (includes step children);

   siblings (includes step siblings); or

   spouses to any of these family members.

 

If the only relationship is through marriage, the marriage must still be in place.

The individual or spouse must sign a statement giving the name of each person for whom the spaces will be used and the relationship to the individual or spouse of each person when they own spaces that are not intended for the individual or spouse.

Until the purchase price is paid in full, the individual does not own a burial space under an installment sales contract or similar agreement if:

the individual does not currently own the space;

the individual does not currently have the right to use the space; and

the seller is not currently obligated to provide the space.

Treat the amounts paid as burial funds (592) until the individual makes all payments on the burial spaces contract.

Exclude per person only one type of burial space that serves the same purpose.  For example, exclude a cemetery lot and a casket for the same person.  Do not exclude a casket and an urn for the same person.

If fully paid burial spaces are part of a burial contract and the value of the burial contract is not an excluded burial asset, exclude the value of the burial spaces and the portion of interest earned only on the fully paid burial spaces.  Use the formula in 592-6, #1 to decide what portion of interest is earned on the fully paid burial spaces.

If a burial space contract is not excluded, treat the interest earned on the contract during that time under the rules in (415-7), certain interest or dividend income; irregular and infrequent income.