Irrevocable Funeral Trusts information, rates, frequently asked questions
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Frequently Asked Questions

What is an Irrevocable Funeral Trust?

An 'Irrevocable Funeral Trust' is a trust you create for your final expenses. It is a single premium life insurance policy that is offered by a select group of insurance companies - placed into your 'Trust' for safe-keeping until you pass away. Because the policy itself is owned by your 'Irrevocable Funeral Trust', it offers tax-free benefits, protection from inflation, and can be shielded from confiscation by Medicaid or nursing homes.

What are the Advantages of an Irrevocable Funeral Trust:

Peace of Mind - Owners of an Irrevocable Funeral Trust enjoy all of the following benefits
  • Cannot be confiscated by any nursing home or government sponsored care (Medicaid)
  • Exempt from Medicaid and Supplemental Security Income (SSI) "spend down" requirements and Estate Taxes
  • Insulated against inflation
  • Can be used for additional expenses such as:
    • a permanent monument in the cemetery
    • travel expenses for family members to attend your funeral
    • outstanding debts or obligations
    • hospital, doctors, legal or attorney's fees
    • a repast once the services are concluded
    • your final expense monies are guaranteed to be there when you need them

What expenses are paid for by an Irrevocable Funeral Trust?

  • Basic Services of Funeral Director & Staff
  • Other Professional Services
  • Embalming
  • Other Care of Deceased
    • Dressing / Cosmetology Casketing
  • Funeral Home Facilities and/or Staff Services
    • Viewing/Visitation
    • Funeral Service
    • Memorial Service
    • Graveside Service
    • Other
  • Other Merchandise
    • Clergy Honorarium
    • Death Certificates
    • Musicians
    • Temporary Marker
    • Stationery Package
    • Obituary Notices
    • Flowers
    • Clothing
    • Open/Close
    • Other
  • Casket
    • Alternative Container
    • Outer Burial Container
    • Other Services
    • Transportation Equipment & Driver
      • Transfer of Deceased
      • Funeral Vehicle/Hearse
      • Car/Limousine
      • Utility/Service Vehicle
      • Other
  • Cemetery Charges
  • Cemetery / Burial Plot

Who can assist you with creating an Irrevocable Funeral Trust?

Creating an Irrevocable Funeral Trust is easy to do by speaking with one of our representatives. Search for the closest representative in your area now. Select insurance companies can offer Irrevocable Funeral Trusts. You should feel comfortable knowing that insurance companies are rigorously regulated in every state. In order for an insurance company to offer any insurance product or service to the residents of your state, it must pass through an extensive review and examination by a state review board or commission.

The insurance company must have sufficient reserve funds to be certain that they can deliver on their promise to pay the benefit when that time arrives. Only then does it receive a license to do business in that state. Only then can the Irrevocable Funeral Trust be offered to you through a Licensed Agent. And, if the insurance company wants to offer the product or service in other states, it must pass through a similar regulatory process in those states as well. Irrevocable Funeral Trusts are not necessarily available in all 50 states. Click here to find out if the insurance companies that offer Irrevocable Funeral Trusts are available in your state.

Who can I speak with to get more information on an Irrevocable Funeral Trust?

Only agents licensed to sell life insurance products in your state, can legally offer Irrevocable Funeral Trusts. Licensed Agents must pass an equally rigorous review and examination rendered by state examiners in every state in which they want to offer any insurance product or service.

Locate an Irrevocable Funeral Trust agent now! [click here]

What are the qualifications to create an Irrevocable Funeral Trust?

  • Guaranteed issue until 99 years of age
  • No underwriting required - everyone approved
  • No medical examination - everyone is accepted
  • No questionnaire to complete
  • You cannot be turned down for any reason (unless you are over 99 years of age)

Differences between an Irrevocable and a Revocable Trust explained

An 'Irrevocable Trust' is a 'Trust' that once established cannot be 'dissolved' until the terms of the 'Trust' are satisfied. In the case of an 'Irrevocable Funeral Trust' the person named as the creator [or grantor] of the 'Trust' must pass away before the terms and the assets of the 'Trust' can be put into motion because the wording in this 'Trust' states that the assets can not be paid out UNTIL the creator passes away. It is very important that you realize that an "Irrevocable Funeral Trust' cannot be dissolved for any reason whatsoever. What these means is that NO PERSON or ENTITY, not even the person in whose name the 'Trust' was created, can gain access to the assets placed into the 'Trust' - EVER. This is the singular reason why no person or entity can confiscate the assets placed in an 'Irrevocable Funeral Trust'. This is also the reason why funeral trusts receive special tax treatment.

A 'Revocable Trust' is one that can be created by anyone, and at a later date, the 'Revocable Trust' can be 'dissolved' by the person who originally created it. Upon dissolution, the assets (if any) that were placed into the 'Trust' revert back to the ownership status they held before they were assigned to the 'Trust'. Because a 'Revocable Trust' can be dissolved by its creator, or some other person or entity at any time, a 'Revocable Trust' DOES NOT enjoy favorable tax treatment or exemption from being confiscated by nursing homes or Medicaid providers or even hospitals, doctors and the like. In the case of seniors seeking care in a nursing home, expecting their care to be paid for by the government, they are now subject to the "spend down" rules imposed by all states before providing free nursing home care.

How do I fund an Irrevocable Funeral Trust?

Read our detailed guide on how to fund an irrevocable funeral trust on the Funding a Funeral Trust page. Below are some quick suggestions:
  • Write a check for total amount of 'trust'
  • "old" US Savings Bonds [Learn More About US Savings Bonds](may have tax implications)
  • Expiring CD's or Treasury Certificates (may have tax implications)
  • Exchange an "old" insurance policy with built-up cash values (may have no tax implications)
  • Tax free withdrawal from most Annuities (up to 10%)

How can I obtain an Irrevocable Funeral Trust?

By contacting a Licensed Agent in your area, you can speak with him/her and have all your questions and concerns explained to you. By clicking here, we will give you a list of Licensed Agents in your area who are registered to take your application for an irrevocable funeral trust.

Who creates the Trust documents?

When the insurance company you decide upon issues the life insurance policy, it also creates the 'Irrevocable Funeral Trust' legal document on your behalf and places the insurance policy into the trust. All you do is sign the trust documents and your final expense monies are locked away until you pass away.

When do you create an Irrevocable Funeral Trust?

Because you start the policy, and create the 'Irrevocable Funeral Trust' all at the same time, you are required to fund the entire trust at the same time, up front.

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