What Is Funeral Trust? Definition

Why it matters

A funeral trust may be revocable or irrevocable, and the difference matters. Irrevocable trusts can be linked to Medicaid planning in some states, but rules vary. Ask who the trustee is, what fees apply, and what happens to unused money. Compare a trust with a prepaid insurance policy. Families should check state rules and may speak with an attorney or the state's funeral regulator.

Source: law.cornell.edu

Related terms

Pre-Need Funeral Contract: A pre-need funeral contract is an agreement to pay for funeral goods and services in advance. The money may be held in a trust or backed by an insurance policy.
Assignment of Benefits: Assignment of benefits is a written transfer of the right to receive policy proceeds to another party. In funeral planning, the owner may assign proceeds to a funeral home to pay the bill.
Estate: An estate is everything a person owns at death, including property, bank accounts, and investments, minus debts. It is handled under a will or state law.
Funeral Costs: Funeral costs are the expenses for a funeral or other final arrangements, such as services, a casket or urn, a burial plot or cremation, and transport. Prices vary widely by provider and location.
Pre-Need Insurance: Pre-need insurance is a policy or contract sold through a funeral home to pay for specific funeral goods and services chosen in advance. The benefit usually goes to the funeral provider, not to the family.

All 241 terms

Why it matters

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