Many people set up burial trusts as part of the funeral planning process. The money set aside is earmarked to pay for funeral and burial costs, which means loved ones won’t have to come up with the funds. If you’re not sure whether to set up this legal agreement, here’s some information to help you decide. 

What You Need to Know About Burial Trusts

What is a burial trust?

The person who sets up a burial trust is known as the grantor. The money they put in the trust is solely to be used to pay for funeral and/or burial expenses upon their death. If the trust is irrevocable, the funds can’t be used for any other purpose. 

Who serves as the primary beneficiary?

The primary beneficiary is the service provider, which could include the cemetery or funeral home. Upon the grantor’s death, funds are released to the beneficiary to use for the purposes outlined in the legal arrangement. If any funds are left over, the service provider might keep the money or give it back to the estate. 

How do I make arrangements?

The funeral directors or the administrators at the cemetery can make arrangements. They’ll set the rate for future services based on the price you agree on. You can use life insurance, bonds, payment plans, or cash to fund the trust. You can also set up the trust through your bank. 

What are the benefits of having a burial trust?

With a burial trust, the cost of your funeral is “locked in.” This means your service won’t be subjected to price increases at the funeral home or cemetery. Arranging a burial trust can also increase your chances of qualifying for Medicaid since funds in the trust don’t count as part of your assets.

If you want to plan a funeral in the Fairfield County, CT, area, contact the courteous professionals at Adzima Funeral Home in Stratford. They’ll help set up a burial trust to fund your funeral or help you create a touching sendoff for a departed relative. To discuss making pre-planning arrangements, call them at (203) 375-2200. You can go online to find out about the funeral home’s 100-plus year history serving the community and keep up with the latest news on Facebook.