Prepaying for Your Funeral
There are several ways to prepay for a funeral. Benjamin Memorial Home can help guide you through the methods available to you.
Certificate of Deposit Account
Individuals can establish a savings or certificate of deposit account earmarked for funeral expenses. The account can be designated as “payable on death” (POD) to the funeral home.
The IRS defines a funeral trust as “a ‘pooled income fund’ set up by a funeral home or cemetery to which a person transfers property to cover future funeral and burial costs.” Often, the trust is entered into directly with the funeral home, which may agree to “lock in” costs for future funeral or burial services at an agreed upon price. The funeral home sometimes serves as trustee (manager of trust assets), and you usually fund the trust with cash or bonds.
-Revocable Funeral Trusts
A revocable funeral trust can be changed and revoked by you at any time.
-Irrevocable Funeral Trusts
An irrevocable trust cannot be changed or revoked. It offers tax-free benefits, protection from inflation, and can be shielded from confiscation by Medicaid or nursing homes. Irrevocable funeral trusts may also help you qualify for long-term care benefits through Medicaid.