PREPLANNING AND PREFUNDING A FUNERAL

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PREPLANNING AND PREFUNDING A FUNERAL

• Presented by
• Edward D. Jamie, Jr. Funeral Chapel
• 217-04 Northern Blvd. (Suite 23)
• Bayside, New York 11361
• [phone]
• A Proud Member of the New York State Funeral
  Directors Association PrePlan Trust Program

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What Is Preplanning?

• Preplanning is the process of prearranging and/or
  prefunding funeral merchandise and services to be
  provided in the future.

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What Is Preplanning?

• When an individual prepays for a funeral, they
  are placing the cost of the funeral (at todays
  prices) in an investment vehicle, so that the
  interest earned will keep up with inflation to
  cover the cost of the funeral (at future prices)
  when the death occurs.

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Benefits Of Preplanning

• Relieves your family of making difficult
  decisions during their time of grief.
• Choose how you wish to be remembered and ensure
  that your personal wishes are carried out.
• Medicaid recipients may set aside funds for their
  funeral expenses in an irrevocable preneed
  account which will be excluded as a countable
  resource. They may also set aside funds for
  specific family members.
• It saves loved ones from the sudden expense of a
  funeral.

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Who Owns the PreNeed Account?

• Until the funeral home has actually provided the
  merchandise and services, the purchaser remains
  in control of the account and can change
  arrangements and/or their choice of funeral home
  at any time.

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Prearranging a Funeral is Easy

• Select a funeral home
• Meet with funeral director
• Review General Price List
• Select desired services and merchandise

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Next

• Funeral Director prepares a fully itemized
  statement and preneed agreement.
• Both funeral director and purchaser sign
  documents and purchaser receives copies of all.

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Finalize

• Purchaser submits a check for the cost of the
  funeral or arranges a payment plan.
• The funeral director forwards the funds to a bank
  or trust such as the New York State Funeral
  Directors Association master trust, PrePlan.
• The purchaser receives a deposit acknowledgement
  within 30 days, indicating where the money has
  been placed.

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New York State Preneed Laws

• New York State has the strongest consumer
  protection preneed laws in the nation.
• A Purchaser shall receive an itemized statement
  of goods and services selected, a general price
  list, and a pre-need agreement.
• The funeral director must deposit the funds in a
  financial institution or trust in a U.S.
  government-backed investment within 10 business
  days.
• In New York State, funeral directors cannot
  charge a consumer any fee for prearranging a
  funeral.

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NYS Preneed Laws, continued

• The purchaser shall be notified of the
  institution where the deposit was made within 30
  business days of the initial deposit.
• Each year, the purchaser shall be notified by
  written statement of all account activity and
  interest earned.
• All monies paid and interest earned on a
  revocable agreement shall be returned upon the
  demand of the purchaser or their legal
  representative.

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Irrevocable Accounts

• Restricted to applicants for or recipients of
  Medicaid/SSI and specific family members of the
  applicant/recipient.
• Funds may not be withdrawn prior to the
  occurrence of death.
• Funeral homes may be changed at any time.
• Excess funds after the funeral expenses must, by
  law, be forwarded to the county.

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Revocable Accounts

• Funds may be withdrawn at any time prior to death
  (including all principal and interest) without
  penalty.
• Any overage remaining in the account after the
  funeral services have been provided must be
  disbursed to the decedents estate.

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If A Funeral Home Closes

• Funeral service is strictly regulated by the NYS
  Health Department Bureau of Funeral Directing.
• All accountholders must be notified in writing
  within 30 days of a funeral home closing. They
  may then choose to transfer their preneed account
  to another funeral home or request a refund of
  their deposits plus all interest earned.
• The Bureau of Funeral Directing closely monitors
  the process and receives information on the
  resolution of all preneed accounts.

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Who Is Preplan?

• PrePlan is a preneed trust program sponsored by
  the New York State Funeral Directors
  Association.
• Serving New Yorks consumers since 1988
• Accredited by the Better Business Bureau with A
  rating
• Over 80,000 consumer accounts
• Over 600 million dollars in trust
• 600 member funeral homes
• Audited quarterly and annually by an independent
  auditing firm

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How PrePlan Protects Your Funds

• For the security and stability of the monies
  entrusted to PrePlan, funds are invested into
  FDIC insured Certificates of Deposit.
• The portfolio of CDs is strategically
  diversified among 30 different highly rated
  banks.
• Investments are overseen by five PrePlan Trustees
  who are actively engaged in funeral service, with
  the assistance and expertise of an investment
  advisory firm.

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Do You Have Questions?

• Log on to www.nysfda.org for valuable information
  about many end of life topics including
  preplanning and to request any of our helpful
  brochures.
• Call PrePlan at [phone] and talk to one of
  our knowledgeable PrePlan administrators.