New York residents might like to know about funeral trusts. Planning one’s own funeral ahead of time by using a trust will make the process much easier down the line for surviving family members. A funeral trust also allows a person to arrange a service based on personal preferences.
A funeral trust could be used if one’s wishes have not been communicated to family members or an estate executor. If one does express his or her wishes, a revocable trust could be dissolved. An irrevocable trust is different. Money in an irrevocable funeral trust must be used for funeral expenses and cannot be refunded or withdrawn.
IFTs are typically used by those who need skilled nursing care. Money in an IFT is usually exempt when determining eligibility for government assistance. Some people may choose to get a life insurance policy instead of using a trust for funeral costs.
If one can fund long-term care services, a funeral trust may not be needed. No one can definitively predict whether they will need extra assistance when aging, but those who stay generally healthy while growing older may be less likely to need a funeral trust.
It is possible to plan a funeral without prepaying, but most people try to take care of financial matters in advance. A funeral director, funeral trust agency or elder care attorney could provide one with information about funeral trusts.
Aside from a funeral trust, there are other estate planning tools one may need. This might include a will and power of attorney. There also multiple types of trusts for different purposes such as conserving an estate or providing for a loved one with special needs. Trusts cost money to create and manage, so one may wish to consult an attorney when determining the trust that could best benefit one’s family.