Preneed Funeral Merchandise and Services Trust Agreement

• Category: Contracts - Funerals
• State: Multi-State
• Control #: US-C-F-1001-2
• Format: Word; Rich Text

Description

Many individuals have decided to arrange their or their loved one’s funeral prior to death. There arrangements are referred to as “preneed funeral arrangements”. A funeral trust, or qualified funeral trust, is a special financial vehicle that allows you to set aside money for anticipated funeral costs. Through these arrangements, individuals are able to decide in advance what type of funeral they will have, while at the same time eliminating some of the stress that family members frequently experience.

When you establish a trust, you make arrangements with a cemetery or funeral home to provide services upon death. The beneficiary of the trust is the funeral service provider. Individuals may also be able to lock in today’s prices for a future funeral.

Preened Funeral Merchandise and Services Trust Agreement is an agreement between a funeral provider and a third-party trust company in order to provide a secure source of funds for the payment of goods and services related to funeral arrangements. The trust agreement is intended to protect both the funeral provider and the deceased's family by ensuring the goods and services are paid for in full. There are two main types of Preened Funeral Merchandise and Services Trust Agreement: revocable and irrevocable. A revocable trust agreement allows the funeral provider to access the funds to pay for goods and services and make changes to the agreement. An irrevocable trust agreement does not allow the funeral provider to access the funds or make changes to the agreement. The funeral provider must adhere to the terms of the trust agreement, which typically includes providing the necessary documentation to prove the family has purchased the goods and services.