Do you have to pay for anything? No, although families choose to for many reasons. Pre-funding alleviates financial concerns, preventing an unnecessary burden at a time of loss because it ensures funds are available when needed. Pre-funding can help offset inflation - allowing you to pay tomorrow's costs at today's prices. Additionally, some people choose to pre-fund to preserve an individual's Medicaid or SSI eligibility. What are pre-funding options? Generally, trusts and life insurance provide ways to fund your choices. Each provides a different set of advantages and options. Trusts can be revocable or irrevocable. In most cases, they are revocable, meaning that funds can be withdrawn at any time. At the time of death, however, these funds can be paid directly to the funeral home upon presentation of the death certificate. The process assures your funeral expenses are taken care of. Trusts are often used to protect an individual's assets and solve some estate consequences. For those in nursing homes, for example, this method helps assure that funds will be available long after all other finances are depleted and help preserve Medicaid or SSI eligibility. Earnings from trusts are taxable. Investment options are available where the trust pays the taxes. Consult with your funeral director for the trust that is best for your needs. The Brown-Van Hemert Funeral Home is a member of the Michigan Funeral Directors Association Master Escrow Program. With life insurance, coverage often begins the day you apply for a policy, and you may not be required to hold your policy for a specified period of time before you receive full benefits. This funding helps assure you're financially cared for no matter when death occurs. Flexible payment plans are also available. Earnings from life insurance are not taxed like trusts are. The Brown-Van Hemert Funeral Home participates with The Funeral Assurance Plan. What if plans change? If all or part of funeral preparations take place at a funeral home other than the one prearranged with, records of your preferences can be transferred. If funds were in a trust, they normally will be paid to the funeral home providing services. A trust may be moved to another funeral home with proper authorization. The funeral home that originated the trust is allowed to charge up to a 10% fee if such a change is made. Additionally, insurance will be applied toward your arrangements regardless of the funeral home that provided the services, subject to the funeral home's policy and state laws. The funeral home you arranged with may offer some special programs to assure you're protected no matter where death occurs.
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