The burial contract identifies the purchase of $1,300 of burial spaces and $1,700 of burial funds. When a revocable funeral trust is set up, the trustor maintains control of all their assets in the trust. The itemized statement mus A burial reserve will typically cover a burial space (conventional grave site, a mausoleum, urn or other repository) and any other arrangements that need to be made, such as funeral costs. A preneed cemetery merchandise and services contract,' on the other hand, covers things like outer burial container (i.e. They also reserve the right to make changes to the contract terms at any time. Contracts. Unfortunately, the Funeral Rule does not apply to many of the features of pre-need contracts, which are governed solely by state law, and protections vary widely from state to state. Funeral Directors all seem to agree; it’s awesome to Pre-Plan it’s unnecessary to Pre-Pay. For example, this money can be in a bank account, other financial instrument, or a prepaid burial arrangement. The Funeral Rule of the Federal Trade Commission (FTC) directs that a funeral home must provide the customer with a written itemized statement, including the total cost of the funeral that is required by the funeral contract. Funeral expenses documents (receipts, funeral home contract, etc.) The contract must include a complete description of the funeral goods and services to be provided, and the price of those goods and services. If the contract includes funeral services (as opposed to a contract that only covers 'funeral goods' such as a casket) it can only be sold by a licensed funeral director. Some States allow an individual to pre-pay for their burial by contracting with a funeral home and paying in advance for their funeral. If a burial contract is a resource,we use as its value: • the amount payable to the owner upon revocation; or • if the contract is not revocable but is salable, its CMV . A burial fund is money set aside to pay for burial expenses. This is a contract between the funeral home and an individual for the purpose of pre-arranging a funeral. Proof of funds received from other sources specifically for use toward funeral costs. Revocable Funeral Trusts. "A funeral trust is a contract you enter into with a provider of funeral or burial services. Often, the trust is entered into directly with the funeral home, which may agree to "lock in" costs for future funeral or burial services at an agreed upon price. How does a pre-paid funeral work? Exempt $6,774 of an irrevocable prepaid burial contract. The agreement specifies who the arrangements are for, what exactly the funeral home will provide at the time of death and how much money the patron paid to the funeral home to provide the arrangements. that includes the applicant’s name, the deceased person’s name, the amount of funeral expenses, and the dates the funeral expenses happened. The procedures for canceling a preneed funeral or burial contract vary from state to state, as does the amount of money that is refundable to the purchaser upon cancellation. Treat any amount not specified in the contract as a transfer for less than fair market value. Only a minority of state laws requires that the preneed contract include a specific disclosure about the purchaser's right to cancel. No Guarantees In The Prepaid Funeral Plan Business. There aren’t any guaranteed when it comes to prepaid funerals. This includes the option to dissolve the trust altogether and regain direct access to their assets to allocate elsewhere. 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