For many people, end-of-life planning is stressful, sad, and overwhelming. It's also sometimes challenging knowing what your loved one may have wanted after they have already passed. According to Seniors Mutual, about 63% of seniors prefer to be cremated rather than buried. Information like this is essential and hints at why a funeral trust is a good idea. Keep reading to learn more about this option.
What Is a Funeral Trust?
A funeral trust is a type of end-of-life planning tool that can be used to pre-arrange funeral plans and pre-pay for expenses. The money for these expenses is put into a trust until the trustor passes away. The funeral trust will then pay for the plans that were pre-arranged with a specific funeral home. You can plan for a revocable or an irrevocable funeral trust. The difference between these two types of options is that irrevocable doesn't allow you to change your mind later and reclaim the benefits while a revocable allows this option.
What Can Be Paid With Funeral Trust?
Funerals can be expensive. Even if you choose to use affordable cremation services, there are still a lot of other details that must be paid for. The funeral trust can be used to pay for many types of funeral expenses. It can be used to pay for a casket, vault, or cemetery plot. It can also be used for paying embalming or cremation costs. These types of trusts can even be used to pay for clothing, presentation, and preparation of the body. Transportation is also an important consideration for some people. If you plan to have a venue, food, or flowers, you can also obtain the funds for these expenses from the funeral trust.
What Are Benefits Using Funeral Trust?
This type of future planning tool is useful in many ways. It often gives you executor flexibility. This means that any relative, person, entity, or funeral home can handle the arrangements. You will be the one to decide who is in charge, however. These are easy for non-family members to use and navigate, taking a load off their plate during a difficult time.
Another distinct advantage is that an irrevocable funeral trust can be excluded from your assets if you're applying for Medicaid coverage. This makes it easy to set aside money for your funeral expenses without endangering your eligibility for Medicaid. These plans also help you save money. Your funeral expense costs can be locked in at the time the trust is set up. This means that if the costs of those services increase significantly between the time you set up the trust and the time you pass away, the money will still cover the expenses.
If you're interested in funeral planning or affordable cremation services, don't hesitate to get in touch with Flinch & Bruns Funeral Home today. We're here to help you with these crucial decisions.