FUNERAL PRE-ARRANGEMENT

Why make funeral pre-arrangements?

In the past, most people did not plan their own funerals, presuming that their families would take care of things when a death occurs.  Today, many people want their funeral services to reflect how they lived along with the things they loved.  The way to make sure that this happens is by pre-arranging their funeral.  People are choosing to make these arrangements for themselves, perhaps for their parents or some other relative or even a friend before a death occurs.

These arrangement conferences are always different than those that take place when a death occurs.  People are more at ease in their discussions and will take the time to share how they want everything handle.  They feel better knowing that their wishes are in order and understood by the funeral director.  They are also glad that their family will not have to agonize over any decisions then the death does occur.  They are able to secure funds for their funeral or know that their finances or insurance will provide adequate money for their choices.

Other times, people pre-arrange funerals because they are applying for SSI/Medicaid benefits.  Irrevocable trust accounts and paid up life insurance policies that are enrolled in irrevocable accounts, both with asset recovery, become exempt assets for determining eligibility in the SSI/Medicaid process.

In all cases, however, the outcome of a pre-arranged funeral is that important decisions were made with calm and thoughtful consideration. 

How do I start the process for a pre-arranged funeral?

Just call the Kowalski Funeral Home at 908-486-7111.  An appointment will be set up and a list of information will be given to the caller that he or she would need to bring to the conference.  Our conferences take approximately two hours, during which, funeral options are explained and explored and prices are given, as well as written down.  The individual will select a casket, vault, prayer cards or other merchandise that would be appropriate or required.  There are a lot of decisions to be made, but they are done in an atmosphere of being a well-informed consumer and not being rushed or stressed out.

Do I have to prepay?

The simple answer is no. 

There are people who once they become aware of what their funeral would cost, earmark a portion of their savings and safeguard the money in a vehicle of their choosing. 

Other folks have life insurance policies that they maintain for the express purpose of paying for their funeral and this gives them the opportunity to see if their coverage is realistic for the cost of the funeral they want.

Another option that is more prevalent is to establish a prepaid funeral trust account.  Prearranging and prepaying a funeral does not guarantee a specific price.  At the time of death, the prevailing General Price List will determine the cost of the funeral as originally selected.  However, prepayment of the total amount of the funeral, as shown on the Statement of Funeral Goods and Services Selected, gains interest, which compounds monthly.  This accumulating interest is used as a tool to hopefully offset any increases in pricing that may occur over time.  The interest received by the Trust Fund will vary with the money market rates and the Trustees will only place the funds into FDIC insured bank deposits.

As a member of the New Jersey Funeral Directors Association, Kowalski Funeral Home and the families we serve utilize the various trust programs of “CHOICES”.  Since its’ inception, CHOICES has provided programs for funeral funding that meet all federal and state consumer protection laws.  CHOICES offers programs to meet individuals needs and protects the consumer to the highest degree with its’ 100% trusting policy and its’ portability aspect.  The trusts are designed to offer individual funding options, whether it is a Revocable Trust (refundable) or Irrevocable Trust for SSI/Medicaid members or applicants, or Sure Trust, which focus on the enrollment of paid up life insurance policies, once again in a Revocable or Irrevocable situation.  (www.njsfda.org)  There are also situations where an individual may begin with a Revocable Trust and through the circumstances of life, must now flip that over into an Irrevocable Trust account.  This can be done very simply with a document completion and filing. 

What happens when I fund a trust account?

When enrollment is made into a trust fund, the check is always payable to the “N.J. Prepaid Funeral Trust Fund”.  The check along with the completed trust fund paperwork will be forwarded to the Trust Fund.  The check will be immediately deposited and the acknowledgement of receipt by the Trust Fund is sent out the next business day.  If a consumer does not receive the acknowledgement within two weeks, then he or she should contact Funeral Planning CHOICES immediately.  The contact number within NJ is 1-800-286-3628 and outside NJ is 1-732-449-4003. 

The money is always considered the asset of the funeral recipient, so by January 31^st. of each year, the Trust Fund will send an annual summary statement of your accounts principal and interest earned, together with the Internal Revenue Service required Grantor Letter for Tax reporting.

Additional Benefits

There is no age limit and no health questions associated with any of the CHOICES trust vehicles.  Once again, they are available to all, including SSI, Medicaid and General Assistance members and applicants, as the Trust meets with all their requirements.  Trust accounts for SSI/Medicaid members or those within six months of application to SSI/Medicaid must be Irrevocable. 

Another major advantage of using the New Jersey Prepaid Funeral Trust Fund is that it becomes available immediately upon death for the payment of the funeral expenses.  For those of you who may have experienced a traditional savings account, some circumstances may implement a freeze of accounts until a will is entered into probate and letters of testamentary are issued.  This can take some time.

In Revocable and Irrevocable Trust Accounts, aside from the funeral home costs, additional funeral expenses can be included in the trust money funds.  These would include the fees for a church or clergyperson, organist, soloist, altar servers, grave, crypt or niche opening or cremation fee.  You may also add the cost of a new headstone or marker with its’ accompanying cemetery foundation fee, or the updating of the engraving of a headstone or the additional scroll work for a bronze marker.  Two items that specifically should not be included in an Irrevocable Trust Fund is the cost of flowers or a repast.