A common form of funding and funeral pre-arrangement is through a funeral trust agreement. This is a contract between the funeral home and an individual for the purpose of pre-arranging a funeral. The agreement specifies who the arrangements are for, what exactly the funeral home will provide at the time of death and how much money the patron paid to the funeral home to provide the arrangements.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A South Dakota Revocable Funeral Trust, also known as a Prearranged Funeral Trust Account, is a specialized financial tool designed to ensure that individuals' funeral expenses are covered in advance. This type of trust offers peace of mind by allowing individuals to plan and pay for their funerals in advance, ensuring that their wishes are followed and financial burdens are alleviated for their families. A South Dakota Revocable Funeral Trust is flexible and can be adjusted or even revoked by the trust creator at any time. This allows individuals to modify their funeral plans as needed, accommodating any changes in preferences or circumstances that may arise over time. It is crucial to note that while the trust can be revoked, the funds deposited into the account might not be refundable. By establishing a South Dakota Revocable Funeral Trust, individuals can protect their assets while receiving the benefit of Medicaid exemption. Funeral trusts are an allowable asset exemption under Medicaid requirements, offering individuals an avenue to allocate funds for their funeral expenses while preserving their eligibility for government assistance if needed. In South Dakota, there are two types of Revocable Funeral Trust — Prearranged Funeral Trust Account options available: 1. Irrevocable Funeral Trust: Unlike the Revocable Funeral Trust, this type of trust cannot be modified or revoked once it is established. Irrevocable Funeral Trusts are often utilized by individuals who want to ensure that their funeral arrangements are set in stone and cannot be altered by themselves or their loved ones. 2. Revocable Funeral Trust: As mentioned earlier, this type of trust can be adjusted or revoked by the trust creator as circumstances change. Revocable Funeral Trusts are preferred by individuals who want the flexibility to modify their funeral plans throughout their lifetime. In summary, a South Dakota Revocable Funeral Trust — Prearranged Funeral Trust Account provides individuals with control over their funeral arrangements and financial security for their loved ones. Whether opting for the irrevocable or revocable version, this trust allows individuals to ease the burden on their families during an already challenging time.
