A burial trust, sometimes referred to as a funeral trust, is essentially a way for families to pre-pay for memorial services. It helps people better plan for the expenses that go along with a funeral and may help you lock in a lower price. Here’s what you need to know.

What You Need to Know About Burial Trusts

What They Involve

To form a burial trust, an individual or family has to enter into an agreement with a funeral home. Each party agrees to a price based on the specific services selected. You can then fund the trust with cash or other assets like a life insurance policy or bonds.

There are several different types of trusts to consider. A revocable one allows you to change or revoke the agreement at any time, while an irrevocable trust does not allow such changes. The latter will usually offer more financial benefits, but the former allows for more flexibility.

Benefits of Investing in a Burial Trust

For the funeral home, this arrangement is a guarantee of payment and contributes to a steady cash flow. This allows them to offer reasonable prices to families willing to pre-pay. In addition, since pricing for burial services can increase over time depending on markets and inflation, you can potentially pay less overall by reserving these services as early as possible. Aside from the financial aspect, having a plan already laid out and paid for before it’s actually needed can alleviate some stress for loved ones when the time comes and will make the planning process go more smoothly.

If you’re interested in setting up this type of agreement for yourself or your family, the experts at Porto Funeral Homes in New Haven County, CT, will help. They will walk you through the options and process involved with setting up burial trusts and other prearrangements for funerals. In addition, the family-owned business prides itself on offering caring and helpful support. Call (203) 467-3000 or contact the company online to learn more.