In recent years many people are taking the time to make their own funeral arrangements. This relieves the family of the deceased of making a decision when they may not have had knowledge of what their love one desired. The following are way to pre-arrange a funeral:
- Pre Plan Without Funding: Provides the funeral director with vital statistic information required for the death certificate and obituary information. Types of service and merchandise desired can be selected and a total cost of arrangements (at today's prices) can be provided.
- Pre Plan With Funding: Everything is done exactly as the pre plan without funding except the agreed upon funeral arrangements and merchandise costs are paid for at the time of pre plan arrangements. The money paid is set up in a Revocable Trust Fund in the pre planners name in trust for the funeral home. The control of the money is in the hands of the pre planner. The account is interest bearing and the interest is usually left in to cover cost increase. Because the pre planner still has control of the account there is a IRS statement issued to the pre planner for income tax purposes.
- Pre Plan For Medicaid Purposes: When a person is applying for Medicaid or is on Medicaid they can prepay for their funeral. In this situation the funds are placed in an Irrevocable Trust Fund and can be used only for their funeral expenses. This account will not be considered as an asset to the pre planner.
In regard to the accounts any overage in the Revocable Trust will be returned to the family of the deceased. In the Irrevocable Trust the overage must be paid to the county in which the pre planner is receiving aid.
Our funeral home staff can help set up and or discuss pre need plans and desires.
All paperwork to set up either of the pre need Trust Accounts is taken care of at the funeral home.