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Funeral Trust, New Jersey

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Irrevocable Funeral Expense Trusts

An Irrevocable Funeral Expense Trust is a simple product.  A life insurance policy is purchased to cover the anticipated costs of a funeral.  The policy is then assigned to an irrevocable funeral trust controlled by the insurance company.  The assignment offers two advantages: (1) at the time of death, the policy proceeds are available immediately to pay the insured’s final expenses, and (2) the policy may not be considered a countable asset in a Medicaid application.  The product is guaranteed issue to age 99.  Premiums vary by state but generally are limited to $15,000.

Reasons Why You Need A Funeral Trust :

  • Because you don’t have or can’t afford a long-term care policy
  • For peace of mind for yourself and your family
  • Protect assets from Medicaid spend down
  • To convert existing cash value life insurance to fully paid up policies
  • To pay for funeral expenses
  • To avoid probate, proceeds immediately goes to beneficiary or estate
  • Maintain independence, eliminate dependency on family members