Irrevocable Funeral Expense Trust

A Staple Product in Every Client’s Estate Plan

Provide your clients and their family members peace of mind in final expense planning through an Irrevocable Funeral Expense Trust, a simple insurance product that is exempt for Medicaid purposes.

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What is an Irrevocable Funeral Expense Trust?

An Irrevocable Funeral Expense Trust is a small whole life insurance policy that is irrevocably assigned to a funeral trust controlled by an insurance company. It works to set aside funds for the owner’s funeral upon their passing. At that time, the funds are made available to cover expenses like the funeral service, casket, and burial costs. This product provides financial security in end-of-life planning not only for the owner but for their families as well.

Product Features

A Simple Solution with Flexible Policy Options

Irrevocable Funeral Trust Documents on Desk

compliance for medicaid

This product offers a quick way to spend down excess assets when qualifying for Medicaid benefits. So long as the value of the policy is below your state’s specific limitation (typically $15,000), those funds will be considered exempt. Many states even allow applicants to purchase policies for immediate family members, providing an even greater opportunity for savings. If a Letter of Goods and Services is required in your state, we can help with that, too.

Two People Choosing a Funeral Provider

Choice of Funeral Provider

Purchasing a pre-paid plan directly through a funeral home can leave your client feeling stuck. With our policy, the owner has the flexibility to choose where the funeral takes place, even if it’s in another state. In short, this policy follows the owner wherever life may take them. Plus, it doesn’t require they make their funeral service selections at the time of purchase. These details can be decided at any time or by the family members after the owner passes away.

Woman Calculating Funds

IMMEDIATE ACCESS TO FUNDS

When a loved one passes away, the family is tasked with moving quickly to make the proper arrangements. Without the funds to pay for funeral services, this burden becomes much greater during an already difficult time. This policy ensures the funds are available almost immediately upon the owner’s passing, giving the family one less detail to worry about. In most cases, the proceeds from the trust are disbursed within 48 hours.

ADDITIONAL PRODUCT BENEFITS

Ability to fund with an existing life insurance or annuity policy.

Proceeds from the trust are tax-free.

No age limits to qualify.

When is an Irrevocable Funeral Expense Trust Appropriate?

An Irrevocable Funeral Expense Trust is a great product for any senior client; however, it is particularly popular in planning for Medicaid purposes. If you have a client seeking Medicaid benefits, this product is a quick and easy way to eliminate excess assets. If your client is simply solidifying their estate plan and wants to ensure their end-of-life expenses are covered, the Irrevocable Funeral Expense Trust is still appropriate and acts as the perfect supplement to any retirement plan.