(1) With the consent of the state department of social services, an agreement may be made pursuant to this act with an applicant for or recipient of aid given pursuant to Act No. 280 of the Public Acts of 1939, as amended, being section 400.1 to 400.121 of the Michigan Compiled Laws, if the state department of social services finds the agreement is in the interest of the applicant or recipient and the state will not be liable for the funeral expenses of the recipient or applicant or the dependent spouse of the recipient or applicant.

    (2) The state department of social services shall promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being section 24.201 to 24.315 of the Michigan Compiled Laws, to provide for the uniform administration of this act. The rules shall be based upon the available resources of the client.

    (3) Upon the request of the applicant or recipient, the state department of social services shall convert a prearranged funeral plan account established under section 1 to an irrevocable agreement if the amount of the account does not exceed $2,000.00 exclusive of interest. The irrevocable agreement shall not be considered in determining the eligibility of an applicant or recipient for aid given pursuant to Act No. 280 of the Public Acts of 1939, as amended. After the effective date of this 1983 amendatory act, a prearranged funeral plan account established under section 1 which is converted to an irrevocable agreement shall permit the depositor of the funds in the account to alter the agreement to provide for a different party to provide the services described in section 1, but, in any event, the funds in the account shall be used only to provide the services described in section 1.