to preplanning for funeral arrangements, there are a lot of questions.
What I am going to attempt to do is clarify any questions and allow
for further discussions if you would like to contact us or email
Important facts of Pre-Need:
state law requires that funeral homes deposit of minimum of 80%
of preneed funds into a federally insured banking institution.
We, as a practice, deposit 100% of all moneys for preneed, foregoing
any commission on these accounts.
- When an Irrevocable
Trust Agreement is established between the funeral home and the
purchaser, the moneys are escrowed into an account under both
names and the purchasers Social Security Number. However, these
funds are not considered an asset to us as regards to government
benefits and taxation.
- All Moneys
in an Irrevocable Trust belong to the purchaser and are intended
for their burial purposes only, these moneys cannot be refunded
to the person at the time of death.
- When a fully
funded pre-planned funeral contract has been signed, no further
moneys will be required. When stating fully funded, this is when,
the full amount of the funeral is paid in cash, insurance policies
do not act as cash, the interest that is gained is used to offset
the cost of inflation, therefore allowing us to offer the same
merchandise in the future for no difference in cost. The reason
insurance does not constitute a fully funded contract is because
some insurance companies do not pay dividends and interest to
the policy holders, therefore never gaining in value.
- Any person
wishing to transfer their preneed funds to another funeral home,
in or out of state, is entitled to 100% of their initial funds
and any interest that account has earned.