What Is a Funeral Expense Trust?

An irrevocable funeral expense trust consists of a small whole life insurance policy that is assigned to a funeral trust controlled by an insurance company. Essentially, it allows you to preserve a specified amount of money for your end-of-life expenses, such as a funeral service, casket, and burial costs. As long as the face value is below a state-specific limitation, typically $15,000, a funeral expense trust is considered exempt for Medicaid purposes. Therefore, this product is a great option whether you’re planning ahead for long-term care or already in a facility and seeking Medicaid eligibility.

Benefits of Funding a Funeral Expense Trust

Although it’s never fun to think about, everyone deserves a funeral. Plus, setting aside these funds ahead of time provides peace of mind for your loved ones, who won’t have to worry about covering all the expenses.

Some may be tempted to choose a pre-paid funeral instead. However, unlike a funeral expense trust, a pre-paid funeral plan is a contract with a specific funeral home. In many cases, the burial plot, headstone, and obituary must be covered separately. Plus, this option limits you to that funeral home and often cannot be transferred if you relocate. With a funeral expense trust, on the other hand, the funds can be used at any funeral home and burial location, so you’re not tied to a specific place.

Why Purchase an Irrevocable Funeral Expense Trust?

• Preserve funds for end-of-life expenses.

  Ensure your funeral and burial costs are covered upon your passing.

• Maintain flexibility for funeral and burial plans.

  Since you’re not tied to a specific funeral home or burial location, you can maintain flexibility as you age.

• Policies valued below a state-specific limit are exempt for Medicaid purposes.

  This product can be used for both advance planning and Medicaid planning, provided your policy is below your state’s limitation.

• Achieve peace of mind for both you and your loved ones.

  Knowing these costs are covered, you can rest assured your loved ones won’t have to pay out of pocket for your end-of-life expenses.

MAKE SURE YOU SPEAK WITH A QUALIFIED PLANNING PROFESSIONAL TO DETERMINE WHETHER A FUNERAL EXPENSE TRUST IS RIGHT FOR YOUR SITUATION.