Advanced Funeral Planning: Funeral Planning with an Irrevocable Funeral Trust
It’s always a good idea to plan in advance for end-of-life. For some, that means setting aside the funds used to pay for your funeral in an irrevocable funeral trust.
No one likes to think about death or enjoys making advanced funeral plans. But even if you did things the “right way” - you worked hard, paid your taxes, provided for your family, and set aside money for your retirement, you could lose all or a substantial amount of your savings if you (or your spouse, if married) need to go to a nursing home. To qualify for government assistance, you would have to spend down your assets to as little as $1,500, meaning at the time of your death you wouldn’t have much left to pay for your funeral.
Many people wonder how they can make sure they have enough money to pay for their funeral service, especially so their kids will not face the financial burden. My response? Consider funding your funeral now. And consider an irrevocable funeral trust, as it offers tax-free benefits, protection from inflation, and can be shielded from confiscation by Medicaid or nursing homes. Additionally, the funds you put into an irrevocable funeral trust can be used to pay for your funeral service at whichever funeral home you or your family members choose.
Speak to an experienced elder law attorney or funeral home provider for more information. For more information on pre-planning or pre-paying, read these articles on advanced funeral planning from the eFuneral Resource Center.
This article is part of the eFuneral Resource Center and was written by Timothy J. Forrestal, a Cleveland, Ohio-based attorney experienced in elder law and estate planning. For more information, please visit www.forrestallaw.com. Those thinking about end-of-life should visit eFuneral.com for help researching, planning, and arranging a wide variety of funeral-related services.