A funeral trust is a financial arrangement allowing individuals to set aside funds for their own funeral expenses.
It is a type of trust specifically designed to pay for funeral-related costs, such as the funeral service, casket, burial, and other related expenses.
How do funeral trusts work?
A funeral trust can be established in two ways. The first way is purchasing a funeral pre-need contract from a funeral home. This contract specifies the type of funeral service the individual wants, and the funeral home guarantees to provide the services at the agreed-upon price.
The second way to establish a funeral trust is to set up a trust fund with a financial institution. The funds in the trust are invested, and the interest earned is used to pay for the funeral expenses.
What are the benefits of a funeral trust?
There are several benefits to establishing a funeral trust. A funeral trust allows individuals to plan their funeral expenses in advance. This can relieve their loved ones of the burden of making funeral arrangements and paying for the expenses.
It can help to protect the individual’s assets from being used to pay for their funeral expenses, which can be particularly beneficial for those who may require Medicaid or other government assistance.
The trust can help to ensure that an individual’s wishes are met regarding their funeral service. The individual can specify the type of funeral service they want, the casket they want, and any other special requests they may have. This can give the individual peace of mind, knowing that their funeral service will be conducted according to their wishes.
Is a funeral trust right for you?
A funeral trust is a financial arrangement that can provide peace of mind for individuals who want to plan for their own funeral expenses. It can relieve loved ones of the burden of making funeral arrangements and paying for the expenses, and it can help to ensure that an individual’s wishes are met regarding their funeral service.