Irrevocable Funeral Trusts

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Irrevocable Funeral Trusts & You

Peace of Mind for You & Your Loved Ones

Concerns Facing Seniors Today

    • Loved Ones passing away
    • Outliving your money
    • High cost for nursing home care
    • Failing health & losing one’s independence
    • Will there be money available to pay for final expenses?


Why Should I Plan for My Final Expenses Now?

    • Relieve your loved ones from making difficult decisions during a stressful time of personal loss and grief
    • Your funeral will be conducted according to your wishes
    • Eliminates any family struggles over “what you would want”
    • Protecting your funds for final expenses has become essential


Advanced funeral planning gives you the peace of mind that comes with knowing your funeral arrangements are taken care of while lessening the burden on your survivors.

– American Association of Retired Persons (AARP)


How Does the Deficit Reduction Act of 2005 Affect My Ability to Give Away my Assets?

    • Any assets “gifted” away are subject to being a “countable asset” in determining Medicaid eligibility “if made less than 5 years ago”.
    • The “Look Back” rule has been extended from 36 months to 60 months
    • Any paid-up life insurance policy must be redeemed and used to pay for your expenses before you can qualify for Medicaid
    • The only legal way to preserve assets (money) to pay for your final expenses is by placing up to
    • $15,000 into an “Irrevocable Funeral Trust”.


What is an Irrevocable Funeral Trust? (IFT)

    • A legal method to preserve up to *$15,000 of your assets to pay for your final expenses
    • An IFT is protected from any nursing home, long-term care facility or creditors of any kind
    • It is 100% exempt for the Medicaid “spend down” rules
    • Your money will ALWAYS be there to pay for your final expenses


Why is an IFT a Better Choice than Pre-paid Funeral Expenses in a Funeral Home?

    • Safety & Security – you can be 100% certain that all the monies placed into your IFT will be available when needed to pay for your final expenses
    • Portability – you are not obligated to use specific funeral home to provide for your final ceremonies
    • Instant Availability – in the event that your assets are tied up in non-liquid investments, monies will be available for your final expenses.


What If I Am Confined in a Nursing Home?

    • Nursing Home Confinement cost range from $5000 to $8000 per month – or more
    • Only after you spend all but $2000 of your assets will Medicaid begin to pay for your nursing home expenses
    • Stay-at-home spouse is allowed to keep one care, one house, one wedding ring, a small amount of liquid assets, and funeral expenses in a burial trust. Other assets must be spent-down.


How an Irrevocable Funeral Trust Works to Protect Your Assets!

    • Single-pay premium of up to *$15,000
    • 100% protection from *Medicaid spend-down. Your funds are totally safe & secure.
    • The funeral home is paid first then…
    • Any remaining money is returned to the estate of the insured


The #1 Reason People Purchase An Irrevocable Funeral Trust…


What Costs Does an Irrevocable Funeral Trust Cover?

    • Basic Services of Funeral
    • Director and Staff
    • Musicians
    • Temporary Marker
    • Care Deceased
    • Flowers
    • Clothing
    • Cemetery Charges
    • Graveside Services
    • Clergy Honorarium
    • Death Certificates
    • Outer Burial Container
    • Casketing
    • Stationery Package
    • Memorial Services
    • Funeral Home Facilities and Staff Services
    • A permanent monument in Cemetery
    • Casket
    • Alternative Container
    • Embalming
    • Hearse and Limos
    • Transfer of Deceased
    • Viewing/Visitation
    • Outstanding debts or obligations




NOTE: Consult an Elder-Law Attorney for specific rules of your state. Medicaid eligibility varies from state to state.


    • Medicaid rules vary from state to state. Eligibility rules pertaining to the Irrevocable Funeral Trust and Final Expense plans can vary.
    • Medicaid rules can change without notice.
    • This information is for the illustrative purposes only is not intended to convey specific rules on Medicaid or any other Government program.
    • If specific legal advice is required, a person should consult an Elder Care Attorney in their state for specific legal assistance.
    • The Irrevocable Funeral Trust with the Final Expense Insurance plan is not meant to shelter additional assets. It is specifically meant to provide for funeral expenses only. If there are excess funds remaining after the funeral home is paid at the time of the death, the beneficiary must be the “Paid to the Estate of the Insured”. This could be the state for recovery purposes if the insured was on Medicaid or SSI


Author: Frank J Zakrocky

Frank believes in helping people by guiding them with sound, practical direction. Things like cutting expenses, trying to help people save more and helping to implement low risk money making plans.

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