As a licensed funeral service establishment doing business in the State of Maine, Brookings-Smith offers several types of funding options:
- Maine Mortuary Trust Agreements
- Life insurance – purchased through an insurance agent (not a funeral director)
- Funeral home can take assignment as beneficiaries of these policies in advance
- Existing life insurance mortuary trust
- Personal savings
- Managed by family
- Managed by a Trust Officer through a financial institution
Maine Mortuary Trust Agreements are the most common funding contracts used through a funeral service establishment. A Credit for Services Trust essentially uses whatever funds that have been placed in trust as a credit towards whatever services were selected at the time of passing. If there are more funds in the trust then what the expense is then the family would be refunded the difference, or the family would be required to pay the difference if there was inadequate funding to cover the expense. A Guaranteed Payment Trust is used when the trust is fully funded at the time it is set up and no matter the costs at the time of passing – more or less then the funding – Brookings-Smith will complete the services as originally contracted. These trusts are established as Irrevocable Agreements so that the funds cannot be taken out of the financial institution that holds them so that they are there for the unforeseen future. The interest gained from the balance held in trust may be considered income to the person that the trust is to benefit for tax purposes. It is possible to establish a mortuary trust so the trust can pay the tax.
E-mail us: info@brookingssmith.com