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.
The Tennessee Revocable Funeral Trust, also known as the Prearranged Funeral Trust Account, is a financial tool designed to ensure that your funeral expenses are covered in the future. This trust account allows you to make specific arrangements and set aside funds for your funeral services, providing peace of mind for both you and your loved ones. This funeral trust account typically offers flexibility and control over your prearranged funeral plans. By establishing this trust, you have the ability to modify or even cancel the arrangements if necessary, ensuring that your preferences are met and allowing for adjustments as circumstances change. One of the main benefits of the Tennessee Revocable Funeral Trust is that it protects your funds. By placing your funeral funds in a trust, they are exempt from being considered when determining eligibility for government assistance programs such as Medicaid. This means that your funeral expenses will not deplete your assets, allowing you to pass on more to your beneficiaries. There are several types of Tennessee Revocable Funeral Trusts available, each offering different features to cater to individual needs: 1. Traditional Trust: This type of trust allows you to make rearrangements for your funeral services, such as choosing a funeral home, casket, burial plot, or cremation options. You can set aside funds specifically for these expenses, giving you control over the details and costs involved. 2. Irrevocable Trust: Unlike the revocable trust, the irrevocable option does not allow for modifications or cancellations once established. This type of trust typically offers additional protection, as the funds held in the trust account are not considered part of your estate, reducing potential estate taxes. 3. Insurance-Funded Trust: This trust option involves using an insurance policy to fund the funeral expenses. By purchasing a life insurance policy, the proceeds are directed into the trust account, ensuring that the necessary funds are available when the time comes. This option allows for flexibility in premium payment options and can be tailored to meet specific coverage needs. 4. Family Burial Trust: This type of trust is specifically designed to cover the future funeral expenses of multiple family members. By establishing a family burial trust, you can allocate funds for the future services of not just one individual but several family members, making it a convenient and efficient option. In summary, the Tennessee Revocable Funeral Trust — Prearranged Funeral Trust Account is a valuable tool for individuals who wish to plan and secure their funeral expenses in advance. With various types of trusts available, you can choose the one that best suits your needs and ensure that your funeral arrangements are personalized and financially protected.
