Disregard a prepaid burial contract funded by a life insurance policy that has been irrevocably assigned to a third party. A life insurance policy irrevocably assigned to a third party no longer belongs to the person.
Example: The person owns a prepaid burial fund with the ABC Funeral Home. The person purchased a $7,000 insurance policy from the ABC Funeral Home which was acting as an agent for the XYZ Insurance Company. The Statement of Goods and Services includes a detailed list of goods and services to be received at the time of person's death, totaling $7,000. The $7,000 XYZ Insurance policy includes an Assignment of Ownership signed by the person, stating that ownership of the insurance policy has been irrevocably assigned to the XYZ Trust. The Assignment is also recognized and signed by the ABC Funeral Home representative, acting as an agent of the XYZ Insurance Company.
Ownership of the XYZ Insurance policy that funds the person's prepaid burial contract has been irrevocably assigned. The assignment is recognized by the XYZ Insurance Company. Disregard the insurance policy and prepaid burial fund as property that no longer belongs to the person. There is no countable resource to apply to the person's resource limit.