We can discuss the various pre-need options available and answer any questions or concerns.
Why consider Pre-Need Funeral Arrangements?
By planning ahead, you are guaranteeing that your wishes are clear and are relieving your loved ones of these decisions during their time of grief.
What is a Mortuary Trust?
A Mortuary Trust is an agreement between you and a funeral home where you:
- establish ahead of time, the type of funeral arrangements that you want,
- set aside money in a trust fund to pay for those services,
- name the funeral home as the trustee.
Who owns the Mortuary Trust?
You own the Trust, not the funeral home.
What are the advantages of owning a Mortuary Trust?
You can have your costs guaranteed, except third-party charges, ie Cemeteries and obituaries. Planning your services in advance will alleviate your family from making decisions at the time of need.
What types of Mortuary Trusts are there?
There are three types of Mortuary Trusts:
- Guaranteed Service
- Credit for Service
- Life Insurance
Each of the above Trusts can be either Revocable or Irrevocable.
What does it mean to be Revocable or Irrevocable?
A revocable trust may be terminated by the payor at any time and the balance in the Trust will be paid back to the payor, less any fee.
An irrevocable trust may not be terminated by the payor. However, because the payor owns the trust, he or she retains the right to transfer the trust to a different funeral home at any time, thus designating the new funeral home as the trustee. Also, A Mortuary Trust is considered an exempt asset under MaineCare, currently up to $12,000.
What is a Guaranteed Service Trust?
When you select a Guaranteed Service Trust you must fund the trust in its entirety at the time you select the level of services that you want. In doing so, at the time of need, you will be guaranteed to receive all the selected services and merchandise from funeral home, even if the cost for those services and merchandise have increased over time.
What is a Credit for Service Trust?
A Credit for Service Trust does not guarantee the cost of the services and merchandise that you select. A Credit Service Trust does allow you to fund the trust over a period of time. Once the trust has been fully funded, at the current prices, it may be changed to a Guaranteed Service Trust.
What is a Life Insurance Trust?
A Life Insurance Trust is a Credit for Service Trust that is being funded by a Life Insurance policy. A Life Insurance Trust does not guarantee the cost of the services and merchandise that you select.
I already have a Trust with a funeral home; can I transfer it to another funeral home?
Yes, but you should sit down with the new funeral home and see if it would be in your best interest to do so.
If you would like to receive information for your review; or If you would like to learn more about the benefits of establishing a Mortuary Trust for yourself or a loved one, please contact us.