Oregon Administrative Rules
Chapter 461 - DEPARTMENT OF HUMAN SERVICES, SELF-SUFFICIENCY PROGRAMS
Division 145 - TREATMENTS OF SPECIFIC ASSETS
Section 461-145-0040 - Burial Arrangements and Burial Fund
Universal Citation: OR Admin Rules 461-145-0040
Current through Register Vol. 63, No. 3, March 1, 2024
(1) The following definitions apply to this rule:
(a) "Burial arrangement" means an
agreement with an entity - such as a funeral agreement (which means an
arrangement made with a licensed funeral provider), burial insurance, or a
burial trust designating a funeral director as the beneficiary that establishes
provisions for payment of an individual's burial costs. A "burial arrangement"
does not include a burial space, which is covered in OAR 461-145-0050, or a
burial fund (see subsection (b) of this section).
(b) "Burial fund" means an identifiable fund
set aside for an individual's burial costs. A "burial fund" does not include a
burial space, which is covered in OAR 461-145-0050, or a burial
arrangement (see subsection (a) of this section).
(c) In all programs except OSIP, OSIPM, and
QMB-DW, burial insurance is considered a form of life insurance and treated in
accordance with OAR 461-145-0320.
(2) A burial arrangement is treated as follows:
(a) In the REF, REFM,
SNAP, and TANF programs, the equity value (see OAR
461-001-0000) of one prepaid burial arrangement for each
member of the filing group (see OAR 461-110-0310) is
excluded.
(b) For individuals
eligible for OSIP and OSIPM under 461-125-0330(2), 461-125-0370(1)(b), and
461-135-0771, up to $1,000 in combined equity value of each
burial arrangement with a licensed funeral director (plus
accrued interest) and life insurance policies are excluded. The amount of
combined cash and equity value of all life insurance and
burial arrangements that exceeds $1,000 is counted as a resource.
(c) In the OSIP, OSIPM, and QMB-DW programs:
(A) The amount in an irrevocable burial trust
or any other irrevocable arrangement to cover burial costs is
excluded.
(B) Burial insurance that
does not generate a cash surrender value or generates cash surrender value to
which the owner does not have access, is considered an irrevocable arrangement
and excluded.
(C) Burial insurance
that generates a cash surrender value to which the owner has access is
considered life insurance and is treated in accordance with OAR 461-145-0320
and, as applicable, subsection (b) of this section.
(d) Except as provided in subsections (b) and
(c) of this section, in all programs not listed in subsection (a) of this
section, a burial arrangement is treated in the manner as the
program treats a burial
fund under section
(3) of this rule.
(3) A burial fund is treated as follows:
(a) In the OSIP, OSIPM, and QMB-DW programs:
(A) A burial fund may be
established only from financial means such as cash, burial contracts, bank
accounts, stocks, bonds, or life insurance policies.
(B) A burial fund is counted
as a resource if it is commingled with assets unrelated to a burial. The amount
set aside for burial must be in a separate account to be excluded from resource
consideration.
(C) A burial
fund may be established if the countable (see OAR
461-001-0000) resources of the individual exceed allowable limits. A
burial fund is excluded from the resource calculation to the
extent allowed in paragraph (D) of this subsection.
(D) The following calculation determines the
exclusion for a burial fund:
(i) Up to $1,500 of a burial
fund may be excluded from resources for each of the following:
(I) The individual.
(II) The individual's spouse.
(ii) The amount in subparagraph
(i) of this paragraph is reduced by the total of the following amounts:
(I) The face value of life insurance policies
owned by the individual that have already been excluded from resources. This
does not include term life insurance policies that do not generate a cash
surrender value.
(II) The amount in
an irrevocable burial trust or any other irrevocable arrangement designated to
cover burial costs, including the face value of burial insurance considered an
irrevocable arrangement (see subsection (2)(c)(B) of this rule). Burial costs
do not include burial spaces or merchandise (see OAR 461-145-0050).
(E) All interest earned
on an excluded burial fund or increases in the value of an
excluded burial arrangement if left in the fund is excluded
from income.
(b) In the
QMB-BAS, QMB-SMB, and QMB-SMF programs, a burial fund is
excluded as a resource.
(c) In all
programs not listed in subsections (a) or (b) of this section, a burial
fund is counted as a resource.
(4) There is no overpayment for the time period during which the burial arrangement or burial fund existed if the individual:
(a)
Cancels an excluded burial arrangement; or
(b) Uses an excluded burial
fund for any purpose other than burial costs.
(5) If an asset originally used as a burial arrangement or burial fund is converted to other uses, the asset is treated under the other applicable rules.
Statutory/Other Authority: ORS 409.050, 411.060, 411.070, 411.404, 411.706, 411.816, 412.049, 413.085 & 414.619
Statutes/Other Implemented: ORS 409.050, 411.060, 411.070, 411.404, 411.706, 411.816, 412.049, 413.085, 414.619, ORS 409.010 & 414.117
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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