PREPAYMENT
A funeral may be prepaid by establishing a funeral trust. In Wisconsin, 100% of all funds given to a funeral home to prepay final arrangements must be put in trust for the consumer. In some states, the funeral home that pre-arranges may keep a portion of the funds even if they do not conduct a funeral. Wisconsin law is very protective of the consumer and their rights to change their minds and freedom of choice.
The following list shows items that may need to be paid for at the time of death based on what the survivors have chosen:
- Funeral Home Service Charge
- Church Fees
- Obituary Notice
- Casket
- Organist/Soloist
- Flowers
- Vault
- Prayer Cards
- Funeral Luncheon
- Cremation Fees
- Hairdresser
- Death Certificates
- Urn
- Medical Examiner Fees
- Final Date Engraving
- Pastor Stipend
- Interment Charges
- Shipping Costs
The most common reasons for prepaying funeral costs are to reduce financial stress on the survivors or to spend down assets to qualify for government benefits for nursing home/home health care.
To qualify for government benefits, the applicant’s allowable assets are:
- $2000 in checking or savings
- $1500 in paid up life insurance
- Cemetery property & Marker
- Funeral trust
There are two ways to trust for funerals; bank trusts or insurance trusts.
Bank Trust
Irrevocable Funeral Trust- Up to $3000 with interest also irrevocable
Casket Trust - Value of Casket
Vault Trust - Value of Vault
- A Certificate of Deposit is purchased at a bank preferred by the family
- Interest percentage based on rates available on the day the trust is established
- Interest is taxable
Insurance Trust
Irrevocable Funeral Trust- Complete value of funeral and cash advance items with
interest also irrevocable
- Whole Life Insurance policy with irrevocable assignment to funeral home
- Interest percentage approx 2 - 4%
- Interest is non-taxable
- May be paid for on a lump sum basis or on a monthly, quarterly or annual basis
If you wish to prepay your final expenses for services in Wisconsin, regardless of your choice of funeral home, Proko-Wall Funeral Home's pre-arrangement counselor is licensed to establish that funeral trust for you. Please complete the pre-arrangement form and submit it to Proko-Wall.
