Pre-Arranged Funeral Trusts

We offer two types of Pre-Arranged Funeral Trust account options, in accordance with M.S. 149A.97 and IRS Revenue Ruling 87-127, 1987-48 IRB 5.

  • Revocable Trust Agreement - Certificate of Deposit

  • Irrevocable Funeral Trust Agreement

Each of these types of accounts has some advantages and disadvantages, depending on your circumstances. These are described in the following paragraphs, and on the agreement forms for each type of account.

Both types of Trust Accounts are similar in that they are individual accounts, insured by an agency of the Federal Government. In both types, funds are placed in a Certificate of Deposit (C.D.) at a local banking institution, where they will grow until death occurs. At the time of death, the total funds will be used to pay for funeral services. If there are leftover funds, a refund will be issued to the estate.

In the event that the account holder move or chooses another funeral provider, the funds are 100% transferable. The balance can be verified at any time by simply calling our office.

Earnings from these accounts are reported annually by a form 1099, and ANY TAXES ARE THE OBLIGATION OF THE ACCOUNT BENEFICIARY.

Morris Nilsen Funeral Chapel will retain the original C.D., and your account balance can be verified at any time during normal business hours.

Revocable Funeral Trust Agreement

Advantages
  • Generally earns a higher rate of interest.


Disadvantages
  • Does not permit installment payments.
  • As with all bank C.D.s, there is a "substantial penalty for early withdrawal" for any reason other than the death of the account beneficiary.

Irrevocable Funeral Trust Agreement

Advantages
  • Generally offers the highest rate of interest.
  • Interest earnings are also declared Irrevocable (accruing), and takesbest advantage of MA and/or SSI Asset Eligibility requirements.


Disadvantages
  • Does not permit installment payments.
  • Cannot be dissolved without a court order.

Pre-Need Insurance Policy

More information coming soon.

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