Funeral Trust Agreements

are used for setting aside funds for funeral expenses. Such funds must be deposited in a funeral trust account with either a banking institution or an insurance company. No funeral home in the State of Wisconsin is allowed to retain any funds for services in advance of need. All principal, interest and dividend amounts remain on deposit at the discretion of the depositor until the time of need. Trust funds remain the sole property of the depositor, and tax liability, if any, is the responsibility of the depositor. There are various types of Funeral Trust Agreements to meet individual needs, such as Title 19 eligibility, Revocable Trusts and Cost Guaranteed Trusts. Each of these different types of trust agreements and funding options are explained below.

Revocable Trusts

Revocable Funeral Trusts Agreements offer depositors the most flexibility. As the name states, the Trust account is revocable. The depositor may choose to withdraw funds (including interest) in part or entirety at any time during the life of the trust. There are no minimum or maximum dollar limits, and one may either make a lump some deposit or make payments over a period of time. In a payment plan option, the depositor determines the amount and the frequency of each trust account payment.

Cost Guaranteed Trusts

Cost Guaranteed Funeral Trusts assure that additional funds will not be needed for funeral home expenses at the time of death. Such a plan is a Revocable Trust Agreement. The requirements for a Cost Guaranteed Trust includes choosing the type of service and merchandise required, and depositing that amount into the Trust Account in one lump sum. All funds including interest must remain on deposit for the cost to be guaranteed. If a Cost Guaranteed Trust is cancelled, the funeral home is relieved of any previously guaranteed cost. Expenses incurred outside the funeral home, such as, cemetery, flowers, obituary, etc. are not included in a Cost Guaranteed Trust. Additional funds for these outside expenses may be set aside in a separate Revocable Trust.

Irrevocable Trusts (Title 19)

Irrevocable Funeral Trust Agreements offer depositors the least amount of flexibility. As its name implies the Trust is irrevocable. The funds must remain on deposit until the time of death of the depositor. Irrevocable Funeral Trust Agreements meet Title 19 eligibility requirements. In an Irrevocable Trust the first $3000.00 is set aside for the payment of funeral "services", and must remain irrevocable. In addition, funds may be deposited for both a casket and outer burial container. If the funds are deposited in a bank trust, the interest remains a liquid asset unless the interest is also made irrevocable.

Regardless of the type of Trust Agreement you choose, there are several types of funding options. You may either place the funds in a local banking institution or into an approved insurance product.

Traditional Bank Account - In this option the funds are set aside in a local bank or credit union of your choice. Most commonly the funds are deposited into a Certificate of Deposit (CD). The funds are safe and secure. There is no penalty upon death for early withdrawal of funds from the CD.

Wisconsin Master Trust - The Wisconsin Master Trust is similar to a traditional bank account. The funds are set aside in an individual account within a master trust. The Master Trust guarantees an interest rate 1% higher than the average CD rate. The rate is adjusted every six months.

Insurance - In this option funds are place in an insurance product specifically designed for funding of funeral trust agreements and approved by the Wisconsin Office of the Insurance Commissioner. We, at Purath-Strand Funeral Home and Crematory offer insurance funding through Forethought insurance.