While it may be a subject most people would rather not think about, planning for a memorial after passing ensures you can have the service you want and saves loved ones the stress of having to do it themselves. One option, burial trusts, are becoming an increasingly popular pre-arrangements for funerals option, as it helps ensure the funeral service is already paid for. However, there is some confusion surrounding the practice.

Why Burial Trusts Are Popular

A burial trust is a fund set up by a funeral home where a person transfers property to cover future burial costs. This means it’s a contract that you enter into with the business you want to take care of your funeral that guarantees both the payment before it is needed and that the funeral services will be executed per the agreement that you and the funeral home come to. There are two main types of trusts. The first is a revocable trust, which can be changed or revoked by you at any time, while an irrevocable one cannot be dissolved until the terms of the trust are met.

Why These Trusts Are Beneficial

Burial trusts are paid for using any combination of cash, bonds, or life insurance. This simplifies the burial services when the time comes. Once you pass, the arrangements are already paid for and can either be preplanned or handled by any relative after the fact. It can also help lock in the rates of the service. If the rates go up after the trust is formed, the price will remain at the agreed-upon level regardless. A trust can also increase the chances of being eligible for certain long-term care benefits through Medicaid, and since any life insurance cash value used to fund the trust is tax-deferred, it reduces the amount of taxable income that needs to be reported.

 

If you’re considering a burial trust to cover your funeral services, contact the experts at Porto Funeral Homes in New Haven County, CT. For more than 75 years, this family-run business understands the importance of ensuring all the details regarding your memorial are thoroughly taken care of, and they’ll work with you to make the process as stress-free as possible for you and your loved ones. Schedule an appointment by calling (203) 467-3000 for their East Haven location or (203) 934-5000 for their West Haven office. Visit them online to learn more about their services.