Pre-planning

» Overview
» Reasons/Benefits to Pre-arrange
» Steps to Pre-arranging
» Pre-funding Options
» SSI/Medicaid
» Frequently Asked Questions

Overview

Michelle Miller

Advanced Funeral Planning, also commonly known as pre-planning or pre-arranging, is simply taking care of funeral service details before the need arises. McGuinness Funeral Home has Advanced Funeral Planning Counselors on staff that are licensed and accredited to assist our families with their pre-planning needs. We can provide families with guidance in pre-planning and/or pre-funding Advanced Funeral Plans, as well as assistance with Advanced Funeral Plans for Medicaid Qualification. Advanced Funeral Planning consultations may be held at a family’s home, the funeral home or in a group setting. Advanced Funeral Planning services are offered to our families in the community at no charge.

Michelle L. Miller is the Advanced Funeral Planning Director at McGuinness Funeral Home. She is a licensed New Jersey State Funeral Director, a licensed New Jersey State Insurance Producer, as well as a Certified Pre-Planning Consultant.

Reasons/Benefits to Pre-arrange

Why Plan Ahead?

It allows you to personalize your funeral and make it a celebration of your life.

It provides peace of mind for you and your loved ones in that your expressed wishes are known.

It helps eliminate emotional overspending from grief or guilt.

It can help relieve you and your family from the future financial burden of rising funeral costs by making sure there is a financial plan in place.

Steps to Pre-arranging

Step 1: Gathering Life Memories

Gathering the unique details about your life that make you special to your loved ones. This includes information about your family, your life, and your career, as well as hobbies and special interests that you may have.

Step 2: Planning the Arrangements

Discussing and selecting the type of services you would like to have to celebrate your life. This includes making decisions regarding options such as burial or cremation, the type of casket or urn, the services you want, as well as other details.

Step 3: Funding the Funeral

Explaining the costs of the funeral services selected and exploring the funding options available to help reduce the financial and emotional burden on your family. There are several options available to pre-fund the funeral services, which include Forethought Funeral Planning, CHOICES New Jersey Pre-Paid Trust Fund and traditional life insurance.

Pre-funding Options

The three funding options available for pre-funding advanced funeral plans are Forethought Funeral Planning, CHOICES New Jersey Pre-Paid Trust Fund and traditional life insurance. The differences and benefits of each plan are outlined below.

Forethought Funeral Planning

Managed and administered by the Forethought Life Insurance Co., located in Batesville, IN and licensed in the State of New Jersey.

Whole Life Insurance Policy designated for funeral expenses.

Life Insurance Policy funds accrue interest tax free, which helps to alleviate the rising cost of funeral expenses.

Forethought funds are accepted by SSI/Medicaid as an exempt asset.

Forethought Life Insurance Policy is transferable should you move or relocate to a new community.

McGuinness Funeral Home guarantees that you’ll never pay any additional funds on guaranteed items provided no changes are made to the original funeral plan.

CHOICES - New Jersey Pre-paid Funeral Trust Fund

Managed and administered by the New Jersey State Funeral Directors Association.

Funeral Trust Fund designated for funeral expenses.

Funds accrue interest to help alleviate the rising cost of funeral expenses, but income taxes must be paid on the interest earned each year (Form 1099).

CHOICES funds are accepted by SSI/Medicaid as an exempt asset.

Funds are transferable should you move or relocate to a new community.

All funeral expenses are non-guaranteed.

Traditional Life Insurance

Life insurance funds may or may NOT collect dividends over time to add to the value of the policy.

Funds are transferable should you move or relocate to a new community.

All funeral expenses are non-guaranteed.

SSI (Supplemental Security Income)/Meidcaid and Prepaid Funeral Arrangements *

Federal and state law permit families to pay in full for future funeral arrangements by depositing funds into one properly established, irrevocable account through a prepaid funeral contract. These funds can be considered excludable resources when SSI, Medicaid or General Assistance eligibility is determined. An irrevocable trust account or life insurance policy is an account where the money cannot be refunded nor can it be used for any purpose other than funeral expenses.

SSI and Medicaid allow the recipient to have the following assets:

Personal Items: clothing, furnishings, appliances, jewelry and car.

Cash: limited to $2000 liquid assets for an individual.

Life Insurance: when an existing whole life insurance policy has a “face value” of $1500 or less, it is not applied toward the allowable cash assets.

If the “face value” is more than $1500, the “cash value” of the policy will be applied toward the total allowable cash assets.

Prepaid Funeral Arrangements: Your total funeral costs may include: professional services, funeral home staff and facility charges, transportation charges, casket, vault, or urn, and cash advances for clergy, cemetery, monument, etc.

* Consult your county Department of Human Services as SSI and Medicaid Programs are subject to change.

Frequently Asked Questions

How do pre-paid funeral plans work?

You pay for the selected funeral products or services in advance. You may pay in installments or in full. The monies are held in a trust or funeral Life Insurance Policy in the person’s name, which is reinvested into the trust and allows the trust to keep pace with inflation.

What happens to the interest that is accrued in each of the plans?

The interest that is accrued in the prepaid funeral plans allows the plans to alleviate the rising cost of the funeral services due to inflation.

What happens if McGuinness Funeral Home goes out of business?

A Pre-funded Advanced Funeral Plan is federally insured and easily transferable to another funeral home that you select.

What if we move out of the area or to another state?

Your Advanced Funeral Plan can be easily transferred to another funeral home that you select in your new community.

What if we want to change our wishes?

You are able to make changes to your Advanced Funeral Plan, as well as add funds to your plan to help supplement the changes.

What other preplanning documents should I consider?

• A Power of Attorney
• A Health Initiative Power of Attorney
• A Will
• A Living Will
• A Funeral Agent