Advantages
If you already have a funeral trust in place, any other relative or person, or the funeral home will be able to handle any arrangements you have when needed. Another advantage comes in the form of the possibility of increasing your potential eligibility to receive long-term care benefits through Medicaid–thanks to the Medicaid Funeral Trust. If the trust is funded with life insurance, you will also have no taxable income to report, as life insurance cash values grow tax deferred.
Disadvantages
If you are considering using a funeral trust, you should ensure that an independent trustee is in place in order to make sure that the funeral bill is reasonable and to pay out any excess to the family. You’ll also need to make sure that the proceeds in the trust will be an acceptable form of payment prior to naming the funeral home as a trustee or beneficiary. You’ll also have to make sure that all of your information is current. Also, if you happen to move, you should make sure to change the trustee and beneficiary to the new funeral home. Also important, remember to provide either your executor or all of your heirs with a copy of the trust along with any contact information you have for the funeral home and beneficiary (if different).
If you don’t, any income from assets in the trust could be taxed to you as the creator.
If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.
The post Advantages and Disadvantages of a Funeral Trust appeared first on Scott Counsel.
source http://www.scottcounsel.com/advantages-and-disadvantages-of-a-funeral-trust/
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