The costs of a funeral, a grave space, a marker and burial services may vary substantially from community to community, but your final arrangements will very likely cost more than $12,000. The prices charged by death care operators have been increasing from 3% to 5% over the past decade, and will probably continue at a similar pace for our lifetime. Preneed funeral contracts and preneed cemetery contracts provide a way to lock in funeral and burial costs, but a number of factors are forcing families to delay the purchase of preneed contracts:

  • Health or age conditions may preclude qualification for insurance funded preneed contracts.
  • Financial circumstances make other obligations a higher priority.
  • The death care operator may not offer installment purchases, or only installment options which have punitive provisions if installments are missed.
  • A family may not be ready to make a decision regarding the type of arrangement, or which death care operator to use.
  • Transfer or cancellation of the preneed contract could cost hundreds or thousands of dollars.
  • The anticipation that other assets or life insurance will be sufficient to pay burial expenses.

But without a preneed contract, your family could face a financial bind upon your death. An increasing number of funeral homes require immediate payment. Funeral homes are also declining life insurance assignments. Public assistance is becoming more difficult to obtain for burial expenses. With longer life expectancies, our savings may be consumed by medical expenses.

If a preneed contract is not a viable option, The Transition Plans’ Final Expense Trust provides an arrangement to set aside funds in a corporate trust with the following benefits:

  • An account invested in a pooled investment structure that will provide a greater return than a savings account or certificate of deposit. (the account may suffer investment losses though)
  • The flexibility to make contributions when you can afford to.
  • The ability to cancel the trust at any time and receive a refund all of trust deposits and earnings.
  • The trust can be converted to a preneed contact at a later date when you are ready to lock in prices with the death care operator of your choice.
  • Trust earnings are taxed to the trust at the favorable rates established for Qualified Funeral Trusts.
  • The trust is subject to state preneed laws and their consumer protections.
  • Periodic statements are provided to you and your designated agent.
  • Low administration fees.
  • Funding when a funeral home requires immediate payment, or will not accept an insurance assignment.

The Transition Plans’ Final Expense Trust provides flexibility and protections that can only be offered through The Preneed Resource Company and its affiliated funeral home clients.