What is the Pre-Plan?
The PrePlan is a funeral trust pre-funding program that allows you to pre-plan your funeral arrangements and set aside the funds to pay for it ahead of time. The PrePlan is backed by the New York State Funeral Directors Association (NYSFDA) and it is the national leader in managing prepaid funeral and burial accounts.
The funds are placed in FDIC-insured certificates of deposit (CD's) which provide consumers with the combined financial benefit of safe, no risk investments with a maximum rate of interest. Each account is federally insured up to $100,000.
Consumers also receive from PrePlan helpful and informative year-end tax statements and an annual statement detailing your account's activity for the entire year.
The current net consumer yield is 1.24% (as of March 2017).
How the Pre-Plan works...
You meet with a funeral director to make funeral arrangements, selecting the funeral services and merchandise of your choice.
The funeral director supplies you with an itemized funeral statement and pre-need agreement. All pre-need agreements are revocable, unless applying for Medicaid benefits (see explanation below).
Your give the funeral director a check payable to PrePlan.
The funeral director sends the agreement and the check to PrePlan for immediate deposit.
PrePlan funds are placed in FDIC-insured Certificates of Deposit held in a New York financial institution. Each trust fund depositor is insured by the Federal Deposit Insurance Corporation (FDIC) to the extent permissible by the law.
You receive a deposit acknowledgement letter after the account has been opened.
Your account receives a highly competitive rate of interest, historically passing the rate of inflation.
At the end of the year, you receive an annual tax/account summary statement.
Upon completion of your funeral, PrePlan sends the payment to the funeral director.
Revocable Vs. Irrevocable
Revocable PrePlan accounts can be closed and the funds can be revoked from the account at any time. For example, if you open an account and three years later wish to revoke the funds from the account, the funds are recovered 100% without penalty and can be used towards any purpose. The funds are not locked into exclusive application toward funeral payments.
Irrevocable PrePlan accounts can only be used toward the payment of your funeral. However, the advantage of the Irrevocable PrePlan lies with applying for Medicaid Benefits. When applying for Medicaid benefits, the funds in your PrePlan account are protected. The funds will remain in the account and are completely safe. Irrevocable PrePlan accounts cannot be revoked and must only be used toward payment of your funeral.
The PrePlan Assures...
Choice: you choose the funeral you want to mark the end of your life.
Comfort: you relieve the burden on the people who love and care about you.
Confidence: your investment is safe in government-insured securities.
Compliance: your pre-paid funeral qualifies for Medicaid benefits.
Convenience: you may make your payment directly to the funeral director at any time.
Make it easier on those who love and care for you and will be there in the end.
Contact Papavero Funeral Home about setting up your PrePlan today.