Preplanning
Millions of people across the nation are choosing to pay their funeral/burial expenses well in advance. As part of a significant trend, more and more are doing so each day. They recognize that taking care of this important need is not only smart financial planning, but provides great emotional relief just knowing that their final expenses are covered. Funeral pre-payment also allows an individual to make his or her own specific funeral pre-arrangements at the same time, detailing such important items as hours for visitation and the type and content of the funeral or memorial service. Individuals also specify their merchandise selections, which includes everything from the desired casket and monument to flowers and stationary items. Notably, pre-paying funeral expenses and making pre-arrangements also spare surviving relatives and friends from the added stress and trauma of having to make such decisions at a time of great sadness and emotional distress.
We, at Johnstons' Wellwood Funeral Home, are dedicated to ensure that preplanning your funeral, or a loved one's funeral is as safe and secure as possible. At our funeral home, we utilize the PrePlan Funeral Trust Program. There are two types of PrePlan Funeral Trusts: irrevocable, and revocable. An irrevocable trust is strictly for SSI/Medicaid eligible applicants, while a revocable trust is for everyone else not affiliated with SSI/Medicaid benefits. A revocable trust works similarly to a regular bank account, in that the money deposited can be withdrawn at any time of need (for more information on SSI/Medicaid irrevocable trusts, see the SSI/Medicaid section below). With either trust, once the full cost of the preplanned funeral is deposited, from that date on, the costs of the services and merchandise selected are guaranteed. This means that no extra money will be needed at the time of the funeral for the services and merchandise selected.
What is PrePlan?
Preplan is a funeral Trust pre-funding program, backed by the New York State Funeral Directors Association, that is the nationally-recognized leader in managing prepaid funeral and burial accounts. It currently administers over 60,000 of these consumer trust accounts, including irrevocable SSI / Medicaid accounts, for more than 500 funeral homes in New York State.
Security
The funds are placed in FDIC-insured certificates of deposit (CDs) which provide you, as a consumer, with the combined financial benefit of safe, no risk investments that give you a maximum rate of interest. In addition, each account is fully insured up to $100,000. Once your pre-paid funeral account is opened, PrePlan's professional Staff immediately goes to work, sending you a personalized confirmation that your funds have been received and deposited. You will also receive from PrePlan helpful and informative year-end tax statements and an annual statement detailing your account's activity for the entire year.
Opening a PrePlan Trust Account
PrePlan makes pre-paying your funeral/burial expenses easy. All you have to do is contact the funeral home and say you want to open a preplanned funeral trust account. While opening your account, you will be able to pre-arrange your funeral and burial. After paying for your selections with a check payable to PrePlan, the funeral director will then provide you with an itemized list of your selections, as well as a copy of your new pre-paid trust agreement. Finally, the funeral director will then promptly send a copy of your agreement, along with your check, to PrePlan for immediate deposit in your newly established account.
Medicaid/SSI Eligible Individuals
Any person eligible for SSI/Medicaid can set aside and designate funds for the sole purpose of paying their funeral/burial expenses without having to exhaust ("spend-down") their savings. The funeral/burial funds you set aside will in no way be counted as part of your financial resources. In other words, a person will not have to first deplete their resources on medical-related costs such as an extended hospital stay or long-term nursing home care. New York State Law requires that 100% of the funeral/burial funds of SSI/Medicaid eligible individuals be placed in an irrevocable trust account making certain that they will be available when they are needed and used for no other purpose than what you intended. Finally, you have the right to use any funeral home you choose. However, if you change your mind, your money can be moved to any other funeral home at any time, at no cost to you.
For More Information on Preplanning, Please Contact Us at (631) 226-2220
"Prepaying Your Funeral Expenses: A Special "How-to" Guide". NYS Funeral Directors Association, INC.
"Prepaying Your Funeral Expenses: A planning guide for SSI/Medicaid Eligible Individuals". NYS Funeral Directors Association, INC.