Paying for funeral services can put a burden on grieving families. Arranging a burial trust in which you secure funds for after-life services is one way to alleviate some of that pain and make sure that your loved ones don’t have to worry about financial responsibilities. If you’re interested in creating one for yourself, here’s what you need to know.

Revocable & Irrevocable Trusts

When you enter into an arrangement with a funeral home, you have the option of two basic types of trusts: revocable and irrevocable. The former can be amended at any time you choose. You have complete control, which means you have the freedom to make changes to the terms of the contract, or even break the trust completely and take back the funds that you put into it.

Once you commit to an irrevocable trust, however, you don’t have the option of making any changes. Any finances that you put into the trust will remain there under the control of the account. Many people choose this option so that they can qualify for long-term Medicaid benefits. The healthcare program doesn’t consider the funds placed into an irrevocable trust countable toward their limited income requirements.

How to Set Up a Burial Trust

Often, funeral home directors can assist you with the process of creating a burial trust. You’ll need to open an individual account for the beneficiary of the trust at a bank and place the money either into a certificate of deposit or a savings account. Life insurance is also an acceptable method of funding the trust. When you pass away, these funds are distributed to the funeral home or another beneficiary.

If you aren’t sure about how to proceed or have questions, you might wish to consult with an estate planning attorney who can walk you through the intricacies of the process and ensure that all of your needs are met before you make a decision. You may also wish to talk to a financial advisor if you need to determine the most practical amount you can afford to place in the trust.

If you’re interested in creating a burial trust, the caring and compassionate staff at Adzima Funeral Home in Stratford, CT, can assist through every step of the process. They’ve served the community since 1914 and will simplify the process so that both you and your family may have peace of mind when it’s needed the most. To find out more about creating a trust for the payment of funeral, cremation, or burial services, visit their website or call (203) 375-2200 to speak with a representative.