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Are there different types of pre-need arrangements?
As opposed to at-need arrangements, when the death has already occurred, there are several reasons why families choose to make pre-need arrangements. Often, when a loved one is in a terminal state, and a family is referred to a hospice care, pre- need arrangements are made. Though the reality of the impending loss is very difficult to adjust to, the funeral director will gently guide the family in planning the funeral. A family in this situation will have the option to place the funds into a trust account at this time. There are two types of trust accounts, irrevocable and revocable. Both types of trust accounts can be transferred from one funeral home to another. Pre- need trust accounts in a majority of cases are irrevocable.
This is as a result of an individual requiring long term care, and is at the point of applying for Medicaid coverage. An irrevocable trust account can only be used for the funeral of the beneficiary of the trust account. The trust account can be transferred to another funeral home, but can never be revoked. A certified death
certificate of the beneficiary is the only way the funds can be obtained. A prudent individual, not needing Medicaid, can also establish a pre- need arrangement and place the funds into a revocable trust account for themselves or another family member. A revocable trust account can also be transferred to another funeral home, but unlike the irrevocable trust account, it can be revoked, and the funds returned to the person(s) making the arrangements.
Basics of NY Estate Planning
The death or incapacity of a loved one is a difficult situation that, unfortunately, all of us face eventually. The difference in the level of difficulty faced is entirely in your hands - how well did you plan for this contingency? With proper estate documentation in place, you can ensure that your family and legacy are protected, and that there is as little financial impact on your family as possible.
The basic estate plan has two essential
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