I 112th CONGRESS 2d Session H. R. 4176 IN THE HOUSE OF REPRESENTATIVES March 8, 2012 Mr. Southerland introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend title XVI of the Social Security Act to clarify that the value of certain funeral and burial arrangements are not to be considered available resources under the supplemental security income program.

1.

Certain funeral and burial arrangements not considered resources

(a)

In general

Section 1613(d) of the Social Security Act (42 U.S.C. 1382b(d)) is amended— (1)in paragraph (2)(B), by inserting , including a trust or arrangement described in paragraph (5) after irrevocable arrangement; and (2)by adding at the end the following: (5)If— (A)an individual or the individual’s spouse enters into an irrevocable contract with a provider of funeral goods and services for a funeral; and (B)the individual or the individual’s spouse funds the contract by— (i)prepaying for the goods and services and the funeral provider places the funds in a trust; (ii)establishing an irrevocable trust fully funding the goods and services and the funeral provider is the named beneficiary of the trust; or (iii)purchasing a life insurance policy that provides benefits to pay for the goods and services and irrevocably assigning such benefits to— (I)the funeral provider; or (II)an irrevocable trust fully funding the goods and services and the funeral provider is the named beneficiary of the trust, then the irrevocable contract and the funding arrangement for the irrevocable contract shall not be considered a resource available to the individual or the individual's spouse.. (b)

Conforming amendment

Section 1613(e)(3)(B) of such Act (42 U.S.C. 1382b(e)(3)(B)) is amended by striking In the case of an irrevocable trust established by an individual, if there are any circumstances under which payment from the trust and inserting Except as provided in subsection (d)(5)(B)(ii), if there are any circumstances under which payment from an irrevocable trust established by an individual. (c)

Effective date

The amendments made by this section shall apply to payments for supplemental security income benefits under title XVI of the Social Security Act for months beginning on or after the date of enactment of this Act.