Why Prearrange?
No one likes to think about death, dying, and funerals, but more and more people are recognizing the advantages of preplanning final arrangements.
To some it might be as simple as talking to their family about their wishes and desires. Others prearrange their funerals with a funeral director. And many find that pre-financing their funeral makes a lot of sense too.
Not only do you relieve your family of both an emotional and financial burden during a most difficult time, but you have the peace of mind knowing that your wishes have been made known and that they can be carried out.
Prearranging and pre-financing your services is also desirable if you do not have close living relatives to carry out your wishes or to assume financial responsibility for your arrangements.
Finally, pre-financing allows you to set aside funds for your services and still be eligible for Medicare/ Medicaid nursing home assistance.
How are pre-arrangements prefinanced?
Indiana law governs all payments made towards the pre-financing of funerals. Typically, money is placed into a trust fund or used to buy an insurance policy to fund the arrangements you desire.
In either case, the funds are irrevocably held for the purpose of paying for the arrangements you contracted for and are paid directly to your funeral director— outside of your will and without probate.
The contract you sign guarantees you the services you desire. While any growth in the trust will go to the funeral home to cover inflation, they are required to provide the services and merchandise agreed to... even if the amount they eventually receive is less than their prices at the time.
One caution: Indiana law allows an "escrow" option for investment. This allows the interest to be removed as it is earned. This investment option is routinely used by cemeteries to provide money to maintain the cemetery grounds.
But when used to fund a preneed funeral contract, it can be very disadvantagous to the consumer. If you ever attempt to transfer the contract to another provider (for example, you move), the interest may have been spend and you will be left with only the original principal. You will have lost inflation protection, and another provider is less likely to accept the transfer if they are expected to guarantee the services you originally selected. Ask how your money will be invested!
What is MasterChoice®?
MasterChoice® is a trust fund established in 1983 by the members of the Indiana Funeral Directors Association.
It has a proven record of helping your funeral director guarantee the service you desire by providing a safe investment with a reasonable rate of return.
All funds received are deposited in Indiana with the Trust Department of Fifth Third Bank and the fund is administered in Indiana by the Indiana Funeral Directors Association through its subsidiary, Hightower Services, Inc.
And Introducing...
The new PetCare Fund from Masterchoice. Ask your funeral director about pre-paying for pet services. |
