Oklahoma law provides that a purchaser (buyer) of a prepaid funeral contract may elect to make the contract irrevocable. For an irrevocable burial contract to be valid, the election to make it irrevocable must be made by the purchaser or the purchaser’s guardian or individual with power of attorney.

**The irrevocable contract shall not be considered a countable resource**

• There is no maximum face value on an irrevocable burial contract.
• In cases where the OKDHS Form 08MA084E, Management of Recipient’s Funds is on file in the nursing facility, the form serves as a power of attorney for the administrator to purchase and/or elect to make irrevocable the burial funds for the member.

For additional information regarding LTC and Irrevocable Burial Contracts, refer to LTC: Irrevocable Burial Contract – Policy Interpretation Change

A NEW irrevocable burial contract does not become effective until 30 days after purchase. During the 30 days, the policy is an available resource. The cost of nursing home care must be paid during the 30 day waiting period, so that amount must be considered when determining amount of money to put into the irrevocable burial.

A revocable burial contract older than 30 days after purchase. A revocable burial contract older than 30 days, if client or guardian wishes to change to irrevocable, the policy change is immediate, with no wait period.

If there is excess income after the funeral, the funds are given to the family or client’s estate.

Examples:

1. Client has irrevocably assigned a $500 face value and a $1000 face value life insurance. Client has also paid $8,000 in cash. The total amount of the irrevocable burial is $9,500. The irrevocable burial is an exempt resource.
2. Client has irrevocably assigned a $500 face value and a $2,500 life insurance policy. Client has also paid down $7,000 in cash. The total amount of the irrevocable burial is $10,000. The irrevocable policy is an exempt resource.
3. Client has irrevocably assigned a $25,000 face value life insurance policy. Client has also paid $7,000 cash. The total amount of the irrevocable burial is $32,000. The irrevocable burial is an exempt resource. Any excess in the irrevocable burial after the funeral is given to the family or client’s estate.