Preplanning FAQ
The information provided here is meant to offer a brief overview of the basic aspects of prearranging and/or pre-financing a funeral. If you have any special concerns, please feel free to contact us, and a member of our staff would be happy to meet with you.
What is Prearrangement?
Prearrangement is the planning of funeral services before the need arises, often years before death occurs. A funeral director records your preferences for the type of service desired, biographical information, as well as music, casket selection, and other information. You receive a copy of the preferences, and the funeral home keeps a copy as well. Keeping these records in an accessible place is important to surviving family members. A safe deposit drawer is not recommended because the information may be needed on a weekend or holiday.
Why Prearrange?
People arrange funerals for various reasons. Some have definite preferences concerning the funeral service or merchandise and want their families to be informed and involved in the decisions. Others want to save their survivors from having to make decisions at a difficult and confusing time.
Some individuals who have been faced with making selections for loved ones may wish to spare others from the indecision, guessing, emotion, or anxiety they experienced. Still others may prearrange because no one else is capable of making responsible decisions, or they have someone under their care for whom they want to put everything in order. Many like the benefit of financial savings that come from prepaying expenses. In any case, funeral prearrangement can alleviate many concerns, and is often viewed as an element of estate planning.
What is Pre financing?
Pre financing (or prepaying) us the paying for funeral goods and services before they are needed. Although you do not have to pre finance, most people that prearrange also choose to pre finance. Why? Pre financing alleviates financial concerns, preventing an unnecessary burden at a time of loss because it ensures funds are available when needed. Pre financing can help offset inflation by allowing you to pay tomorrow's costs at today's prices.
Is the Rodenberger Funeral Home licensed to offer pre financed funeral contracts as required by Ohio law?
Yes. Funds prepaid for a funeral are strictly monitored and regulated by individual states. In Ohio, funds must be held by a third party, not the funeral home. There are primarily two manners in which to fund a funeral advance of need. One is by using a bank trust, the other is by using a prepaid insurance policy. Both methods usually employ a price guarantee on funeral home services and merchandise, and they both can be set up irrevocably, which can satisfy one of the requirements for Medicaid. Each is a completely safe method of funding.
How to you pre finance a pre need contract?
Pre need contracts may be pre financed by a trust fund or by insurance.
What type of contracts are available?
The Rodenberger Funeral Home offers three types of pre financed contracts:
Non-guaranteed - Revocable
Guaranteed - Irrevocable
Non-guaranteed - Irrevocable
Under the guaranteed contract, the funeral home guarantees to provide services and merchandise in the future at no additional cost to the purchaser when the full contract price amount is paid to the funeral home. This is the type contract most often selected.
Under a non-guaranteed contract, any shortfall in the funds must be paid by the next of kin or the estate of the beneficiary. Any excess must be refunded to the estate of the beneficiary.
A revocable contract is one that may be canceled in writing at any time.An irrevocable contract, by law, cannot be canceled after thirty days of the contract date.
If a Trust Fund is used, where is the money kept?
The money to fund the contract is placed in a federally insured trust with a financial institution licensed to do business in Ohio . After the death of the beneficiary of the contract and after receiving a statement certifying that the contract has been performed, the financial institution pays the funds to the funeral home.
What happens to the interest earned by the trust?
By law, the interest earned remains with the account.
Is the interest earned by the trust taxable?
Yes, According to the IRS, the purchaser of a contract is responsible for taxes on the earnings (if that person is subject to paying income tax.)
Can I make periodic payments?
Yes, we have payment plans that will work with any finance schedule (Monthly, Quarterly, Semi-Annual). Setting up your pre-arrangement with monthly payments will cost more over time to pay off interest, unless the policy is paid off within two years.
What about using insurance to pre finance?
The Rodenberger Funeral Home is licensed to offer an insurance product specifically designed for prepayment of funeral expenses. The policy can be used to guarantee the price of the funeral. This type of policy may be provided by a licensed funeral director who is also licensed to sell pre need funeral insurance.
Other types of insurance policies that are paid up may be used in the financing of a non-guaranteed contract.
Will the contract cover all final expenses?
Only the items listed on a guaranteed contract will be provided at no additional charge. There may be items that are not part of the contract for which there would be an additional charge. These items may include such things as cemetery fees, death certificates, obituary notices, beauticians, etc.
What if plans change or I want my money back?
The funeral home must receive a written demand and has up to thirty days to refund to the purchaser. If the contract is irrevocable, the funds may be transferred to another funeral home, but they cannot be withdrawn for any reason except to satisfy the terms of the contract after 30 days.
If the contract is funded by insurance, the contract may be transferred to another funeral home at the written request of the purchaser. This may be completed at the transferring funeral home, so you don't even have to deal with the prior funeral home. If the contract is funded by insurance, there is no payment of a transfer fee.I've decided I want to prearrange and/or pre finance funeral expenses. What should I do?
Funeral arranging before the need arises is thoughtful and easy to do. Contact us and we will arrange a convenient time for you to meet with a member of our staff and discuss the options available. Or you can use our Online Preplanning Form to fill out some basic information and we will contact you.
Click on a location for more information! |
||
McClure310 Depot Street |
Napoleon1010 Westmoreland Avenue |
Deshler133 East Maple Street |