1	PrePlanning & Prefunding a Funeral Presented By: Curtin Funeral Home, Inc. A proud member of the New York State Funeral Directors Association PrePlan Trust Program
2	FUNERAL PRENEED PrePlanning… Why and How It’s Done
3	Preplanning
4	What is the concept of prefunding a funeral?
5	Reasons for Prearranging To relieve the burden on family members when death occurs. To save your family from the sudden costs of having to pay for a funeral arrangement. To save your family from having to guess what type of funeral you would have wanted. Your family can spend more time remembering your life and less time on the funeral process. Individuals who prearrange make more rational decisions when selecting merchandise and services. You or your loved ones will be able to choose how you wish to be remembered at the time of your passing. Protection of assets when qualifying for long-term care financial assistance (Medicaid/SSI). Federal law dictates that an individual may preserve assets for their burial expenses before their resources are exhausted to SSI/Medicaid eligibility levels. New York law mandates that those preneed contracts be Irrevocable.
6	Can a Funeral Director Charge for Making a Prearrangement?
7	Can a Funeral Director advertise prearrangements through direct mail solicitation?
8	How PrePlan Works 1. An individual meets with his/her funeral director and selects the funeral merchandise and services of their choice. 2. A PrePlan Itemization Statement is completed to reflect the items chosen and prices for each, with the total funeral charges identified.
9	How PrePlan Works 3. A Revocable or Irrevocable Preneed Agreement is signed by the Consumer and the Funeral Director. 4. The Consumer prepays the funeral arrangements with a check made payable either to the funeral firm or to PrePlan^SM. 5. The Funeral Director deposit the funds within ten (10) business days into the PrePlan trust program,
10	How PrePlan Works PrePlan will send the purchaser a confirmation receipt after the account has been opened. PrePlan will also mail an annual activity and tax statement (i.e.1099/K-1 Grantor Trust Statement). When death occurs, the funeral firm forwards the certified death certificate to the PrePlan. Once the authenticity of the certificate is verified, the funds are paid directly to the funeral home. Any excess funds in the account after the performance of the funeral will be returned to either the beneficiary’s estate, the living purchaser, or in the case of irrevocable accounts, the department of social services where the decedent applied for and was receiving Medicaid/SSI benefits.
11	Preneed Agreements Revocable vs. Irrevocable
12	Revocable Agreement
13	CHAPTER 660 of NYS Law Effective January 1, 1997, this new law mandates the irrevocability of preneed funeral contracts for applicants and/or recipients of Medicaid.
14	Irrevocability What it means to the Burial Fund and Burial Space accounts Consumer may establish ONE inclusive Irrevocable Burial Trust No Dollar Limit All funeral services and items may be included
15	Irrevocable Portability Portability Consumers may change their selection of funeral home at any time prior to or after the death of the beneficiary. Within 10 business days of a written request, the preneed funds will be transferred or paid to the newly selected firm or preneed trust.
16	Consumer Protections Mandatory Disclosures All irrevocable burial trust contracts must contain the following disclosure: “New York Law requires this agreement to be irrevocable for applicants for receipt of supplemental security benefits under section two hundred nine of the Social Services Law or of medical assistance under section three hundred sixty-six of the Social Services Law, and for the moneys put into a trust under this agreement to be used only for funeral and burial expenses. If any money is left over after your funeral and burial expenses have been paid, it will go to the county. You may change your choice of funeral home at any time.” All literature printed after January 1, 1997 which promotes prefunded funerals must contain language disclosing the irrevocable nature of burial trusts established for an applicant and/or recipient of SSI/Medicaid.
17	The Prearrangement Process Applicants/Recipients of Medicaid/SSI who wish to prefund their funeral during the spend down process may set up one Irrevocable Burial Trust inclusive of funeral services and merchandise with NO dollar limit.
18	Excess Funds If the account was revocable, families may upgrade the funeral at the time of death. If the family chooses not to upgrade the merchandise or services, the overage must be disbursed to the decedents estate. If the account was Irrevocable, the family may NOT upgrade any of the merchandise or services. The overage MUST go back to the county. Any overage remaining after the performance of a funeral on an Irrevocable preneed account MUST be paid to the county Social Services office where the beneficiary resided. The Social Services office will deposit the overage into the county indigent burial fund.
19	General Guidelines Applicants and/or recipients of Medicaid/SSI may keep a life insurance outside of an Irrevocable Trust with a face value of $1500 or less. Applicants/Recipients may make additional deposits to Irrevocable accounts.
20	"PrePlan^SM is a third party..." PrePlan^SM is a third party preneed trust program sponsored by the New York State Funeral Directors Association.
21	Who are its participants?
22	Who owns the Preneed account?
23	Where are the funds invested?
24	Does PrePlan^SM receive a fee?
25	Summary Establish a prearrangement with a funeral home who uses PrePlan and you can rest assured that: Your funds are safe and secure with PrePlan - A Service You Can Trust! 100% FDIC insured 100% Compliance Forms reviewed by New York State Department of Health You funds will earn a competitive net yield You will receive annual statements
26	Thank You! Questions