Irrevocable Pre-Need Arrangements

By: David Tindall
Tuesday, April 27, 2021

A funeral services package, or pre-need arrangement, is a pre-paid agreement between a person and a funeral home. It details the funeral arrangements for that individual upon their demise. It can be created by anyone, regardless of age or fitness, and is a great way to make sure that your wishes are followed after your death. We at Tindall Funeral Home have seen that many people are now interested in this service.

What Exactly Is a Pre-Need Contract?

In this agreement, rather than paying the funeral home in advance of the services being given, the funds are held in escrow until you die. The funeral home will then deliver the agreed-upon services as per the contract. Any interest earned on the deposit is used to offset rising funeral expenses over time. The arrangements for pre-need funeral services have critical information such as the following:

  • Burial or cremation
  • Final resting location
  • Memorial or funeral service
  • Casket or urn
  • Instructions for a unique funeral or cremation
  • Type of headstone or marker

Pre­need arrangements may be revocable or irrevocable; however, both ensure that the funds necessary to pay death expenses will be sufficient when the time comes. The primary advantage of an irrevocable deal is that it will be used to maximize your Medicaid eligibility.

You might wonder why someone would prefer an irrevocable funeral service contract over a revocable one. However, the former can be used to shield funds from Medicaid. This is because the money put in an irrevocable pre-need arrangement is not deemed an asset when determining Medicaid eligibility, which benefits you.

For any additional information about how pre-need arrangements work, please contact our funeral director with your requirements; we are more than happy to help. Contact us at Tindall Funeral Home through our online form or call (315) 468-5521 if you want to know about our services and need advice.

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