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  1. #1
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    Jan 2013
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    Default Irrevocable Burial Account Limit

    my cliant has an irrecvocable burial account-the pa limit is 11250. My client is under this limit but only if you count the face value. These accounts have a face value and a death benefit value. The death benefit increases because of interest. Does the PA limit of 11250 consider face value or death benefit payout?

  2. #2
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    Default Re: Irrevocable Burial Account Limit

    According to this firm,
    Quote Quoting Irrevocable Burial Funds
    Irrevocable Burial Funds, defined as funds deposited with a financial institution or a funeral director under a written agreement which provides that the funds cannot be withdrawn before the death of the named beneficiary.

    There is no dollar limit fixed by statute or regulation on the amount of the irrevocable burial fund exemption. Generally, however, the fund cannot be more than 125% of the average local burial costs.

    Currently in Allegheny County, a fund of up to $11,250 is being permitted.

  3. #3
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    Jan 2013
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    Default Re: Irrevocable Burial Account Limit

    I understand that Mr. Knowitall -but the question was what do they look at-the face value for example at $5000 or the death benefit
    value at $5500 which includes interest--what is the definition of fund up to 11,250? face value or death benefit value?

  4. #4
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    Default Re: Irrevocable Burial Account Limit

    What you will do is find out the maximum amount permitted in your county. That will be the maximum amount. Per the passage quoted above, the value of the fund cannot be more than the maximum amount.

    I'm not sure why that confuses you.

  5. #5
    Join Date
    Jan 2013
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    8

    Default Re: Irrevocable Burial Account Limit

    Mr Knowitall:
    I'll spell it out
    face value of the policy 11250 -that is the limit
    cash value of the policy 10,000 -but she can never cash it because it is irrevocable
    but if she dies today, the death benefit value of her account would be 12,000 which is over the limit
    of course she isn't dead, so the face value applies
    but when she dies, who gets the difference between the face value and the death benefit of 750?
    Did I answer my own question that the face value should be used while she is alive?

  6. #6
    Join Date
    Jan 2013
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    Default Re: Irrevocable Burial Account Limit

    can you reply to me latest post?

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