What Is Prearrangement?

Prearrangement is simply 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 and you and your family receive a copy of the preferences, and the funeral home keeps a copy as well. There is no payment required for arranging your funeral in advance unless you desire to do so and then a PrePlan trust is established.

What is a PrePlan trust?

A PrePlan trust is an account that is established to pay your funeral expenses.  There are two types of trusts, revocable and irrevocable.  New York State Law mandates that prearrangements with New York funeral firms must be revocable except for SSI/Medicaid recipients. This means that all prearrangements (except when prepared for Medicaid spend down) may be canceled at any time prior to death and the entire balance, including all accrued interest, must be refunded within ten days of the request.

New York State Law also mandates that pre-need burial trusts for applicants or recipients of SSI/Medicaid must be irrevocable. This means that the prearrangement may not be canceled prior to death. It may, however, be transferred to a different funeral home at any time.

Prefinancing alleviates financial concerns, preventing an unnecessary burden at a time of loss because it ensures funds are available when needed. Prefinancing can help offset inflation-allowing you to pay tomorrow's costs at today's prices.

Why Prearrange?

People prearrange funerals for many 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. 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.

For the complete printable Arrangement Form please click "Funeral Arrangements"