What is the difference between an Irrevocable Funeral Trust and doing Pre-Need at a funeral home?
There are a lot of issues facing our seniors today. Where their hard earned assets are going to go when they pass? Are they going to have enough money to live on for the rest of their lives? How and who is going to pay for my funeral when I die? In this day and age pre-planning is absolutely necessary to make sure any of these don’t become burdens on our loved ones.
Thinking about and planning for you funeral can be a very difficult and unpleasant situation but is necessary to ensure that burden does not fall on a child. Funeral homes today offer a wide variety of ways to pre-fund your funeral. Now the funeral homes are great at what they do, Funerals, but they aren’t so good with managing money.
When you go to the funeral home and do a Pre-Need plan with them there are a couple of major factors that can hinder the final outcome at the time of the funeral. First off, you are locked into that specific funeral home, any growth rate gained on the policy will most likely just be gobbled up by the funeral home, and the money you spend today will probably not cover all the expenses in the future resulting in paying more money that you expected.
Having an irrevocable funeral trust is the answer to all these problems. When you fund a trust for say $15,000 at the time of death you will receive all that money plus the growth rate. When funded the irrevocable trust is completely transferable meaning you can take it to any funeral home. At the time of death only the bill from the funeral home is needed for the claim to be file and it only takes up to 48 hours for the insurance company to pay the claim.
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