Irrevocable and Revocable Trust Differences
There are two primary types of funeral trusts available in Wisconsin: revocable and irrevocable.
A revocable trust can be created by anyone and dissolved by the person who created it.
On the surface, this ability to cancel sounds like a good idea.
However, these plans do not receive favorable tax treatment or exemption from creditors or Medicaid "spend-down" rules.
For this reason, the funds placed in the revocable trust can revert back to the estate, making them available to any creditor owed money by the estate.
An irrevocable trust means that it can't be dissolved until the terms of the trust (the passing of the grantor) are satisfied.
Because no person or entity can dissolve an irrevocable trust, the government grants special treatment so that any or all of its funds can be used for final expenses before any remaining funds are passed back to the estate.
No creditors, including the IRS, can touch these funds or count them as assets.
Purchasing From a Funeral Home or From an Insurance Agent
A funeral trust established by an insurance agent not affiliated with a funeral home allows more freedom of choice.
Funeral trusts that are prepared by a funeral home will typically lock you into that particular funeral home.
Therefore, you lose your flexibility in picking a service provider.
In such a case, upon the passing of the policy holder, the funds can only be released to that particular funeral home.
This becomes a problem if in the future you move out the state or your designated funeral home goes out of business or is sold.
We can provide you with the assistance needed in establishing a plan that is both flexible and portable.
Contact FFRG today at 800-354-3548.
Medicare Supplement Insurance Plan Disclosures
Neither Future Financial Resource Group nor the Medicare Supplement insurance policies it sells are connected with or endorsed by the U.S. government or the federal Medicare program.
Plans may be available to persons eligible for Medicare by reason of disability.
All plans may not be available in your state/area.
Call to receive complete information including benefits, costs, eligibility, requirements, exclusions and limitations.
This is a solicitation of insurance. An agent my contact you.