![]() ![]() contingent with a value discountable for the likelihood of the event, like a term policy. Or to suggest that the plan was an asset of the estate! Arguably it is not such immediately before the death or, if the deceased owned it. I would expect HMRC to refuse s172 treatment for any expense that was reimbursable under a lifetime plan by analogy with s162 (1) for an actual liability. I do not believe HMRC’s lexicon includes the phrase “double allowance”. ![]() No doubt there may be further reasonable expenses within s172 if the plan does not meet them because there is a scope or amount cap. There is no related liability to deduct unless any part of the contractual debt remained due and payable. If a funeral plan was paid for before death the expense laid out has reduced the estate as Paul says. Without s172 they would not be deductible in the estate “immediately before death” per s.4(1) because they would not have been incurred “at that time” per s5(3) if incurred after death. See Minnesota Statutes, section 501C.1205, subdivision 3, for special needs trusts and Minnesota Statutes, secti on 256B.056, subdivision 3b, for pooled trusts.S.172 IHTA says: “In determining the value of a person’s estate immediately before his death, allowance shall be made for reasonable funeral expenses”. Upon an MA member’s death, the Special Recovery Unit (SRU) at DHS works directly with any SNT or pooled trust and applies the policy listed above to determine which funeral expenses will be allowed and disallowed. Minnesota law does not prioritize reasonable funeral expenses before MA claims in a decedent’s special needs trust or pooled trust. Special needs trusts (SNTs) and pooled trusts ![]() Accounts set up to pay for a person’s funeral costs after a person dies are not part of the person’s estate and are not subject to MA estate recovery. Online crowdfunding and fundraising campaigns to pay for a deceased’s funeral expenses are increasingly common. Any remaining funds in a prepaid burial trust after funeral expenses have been paid are distributed to the estate and are subject to MA recovery. If a decedent’s funeral costs exceed the dollar amount of prepaid burial trust or insurance funds, then you must analyze the funeral costs that exceed that amount using this funeral expenses policy or your own policy that accords with this one. A decedent may also have a life insurance policy designed to pay for funeral expenses. If a decedent has a prepaid burial trust, the funds must “be distributed for the payment of the at-need funeral goods, funeral services, burial site goods, or burial site services selected, with any excess funds distributed to the beneficiary’s estate.” See Minnesota Statutes, section 149A.97, subdivision 3a, clauses (9) and (10). ![]() Ĝlothing, unless clothing for the deceased is unavailable.Ğntertainment not listed above as a reasonable expense.ğlowers (no matter the purpose or sender).One 24-line obituary without picture for a one-day runĮxpenses for these items are not paid before MA claims:.Music (one instrumentalist or vocalist).ğee or required donation for one officiant.Memorial service, viewing, and visitation:.Ĝemetery plot (get quote from two cemeteries to determine reasonable cost of plot).Ĝlothing for the body, only if clothing is unavailable.Ĝasket (get a quote for the least expensive casket for the deceased person’s body size from two funeral homes within the county and set the reasonable expense in line with these two quotes).Reasonable costs for the following items are paid before MA claims: Services that may be used to prepare a human body for burial or a funeral service.Goods that may be used for a funeral service.Services sold in connection with the final disposition of the human body.Ğxpenses directly related to goods sold or offered for sale or rental in connection with the final disposition of the human body.Reasonable funeral expenses include the following: This policy does not apply to county-paid burials and does not apply to MA eligibility determinations. Interpret this policy or your own policy in a way that is sensitive to cultural and religious practices. You must adopt either the following funeral expenses policy or your own policy that is in accordance with the following policy. The following funeral expenses policy provides a standard for determining which funeral expenses can be paid from an estate before your MA claim when you are administering probate, having been appointed personal representative because of your standing as a creditor. In probate, reasonable funeral expenses are paid from the estate before you can recover MA payments from the estate. If a decedent’s estate does not have enough assets to pay all the claims made against it, Minnesota law prioritizes payment of the decedent’s “reasonable funeral expenses” before MA claims. ![]()
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