Presents the 5 C's of preneedning a Funeral...

Choice- you choose the funeral service that you want
Comfort- your family's burden will be reduced at a difficult time
Compliance- your prepaid funeral arrangements qualify for SSI/Medicaid exemptions
Confidence- your money is invested in safe, government-backed securities that yield an excellent interest rate
Convenience- the payment for completed services is made directly to the funeral director

Preneed is preferred by thousands of people, why?

· It's a safe, well-managed trust;
· Interest rates keep up with or surpass inflation;
· Completely portable to any funeral home;
· Scheduled payment plans available;
· Additional deposits accepted any time;
· SSI/Medicaid expertise in mandatory irrevocable accounts;
· Fund automatically paid to the funeral director upon performance of funeral.

How Preneed is Administered?

A preneed account is opened and your money is deposited on the exact day the Preneed Trustees receive your contract, social security number certification and payment. Your account begins earning the highest rate of interest in the Preneed's time deposit, pooled investment. Interest will vary with money market and CD rates. Funds are placed in FDIC insured bank deposit in a bank within the State of New York and other investments permitted by law.

Annually, you will receive a summary statement of the principal and interest, along with the Internal Revenue Service's required K-1 Grantor Tax Letter for your individual tax reporting. (Interest income is reportable if you are required to file with the IRS.)

The Preneed Trustees are permitted by law to expend up to seventy-five hundredths of one percent of the balance of the trust fund annually for management and administrative expenses. An investment advisory fee may be paid to an unrelated professional investment manager by the Preneed.

What if you are applying for SSI/Medicaid Assistance?

If you or someone in your family will be applying for assistance under one of these programs, contact any funeral director who offers Preneed. Federal and State law provide that properly trusted assets intended for the payment of funeral expenses will not be considered as a resource when eligibility is determined. Setting aside monies for burial expenses is now extremely simplified. See your funeral director for further information.

Note: New York State law mandates that all contracts for prefunded funerals executed by applicants for or recipients of Medicaid be Irrevocable.

Federal and State law permit, through the use of qualified trust funds, the prepayment of funeral arrangements in a manner such that, when you apply for these programs, the funds set aside will be excluded as resources, which might otherwise delay eligibility.

Effective January 1,1997, New York State Law mandates that all contracts for prefunded funerals executed by an applicants for or recipients of Medicaid be Irrevocable.

How does PrePlan assist you in ensuring acceptance?

When people prepay their funeral arrangements, New York law requires the funeral director to deposit 100% of the money into a trust account. In 1988, the New York State Funeral Directors Association established the PrePlan. Each account in the PrePlan is fully insured by the FDIC to the extent permitted by law. Funds are placed in FDIC insured bank deposit account(s), certificates of deposit in a bank within the State of New York and other investments permitted by law.

By using the PrePlan for SSI/Medicaid purposes you may select and completely prefund the funeral of your choice

Advantages of the PrePlan

If the New York Preplan did not exist, most funeral directors would have to deposit prepayments in individual trust accounts at lower interest rates. By contrast, the PrePlan provides a safe, well managed trust for thousands of consumers providing a rate of return that should meet the inflation price of the funeral, so that upon the death of the funeral recipient, there are funds available to meet the future retail price for the same items of goods and services as selected.

Federal and State law provide that properly trusted assets intended for the payment of funeral expenses will not be considered a resource when SSI/Medicaid eligibility is determined. This allows Medicaid recipients to preserve assets that would normally be exhausted, and in so doing ensure their funeral will be provided for.

Preparing for SSI/Medicaid eligibility isn't the only reason to prearrange a funeral.

Selecting and prefunding your burial expenses removes the burden from family members and loved ones at a difficult time. In addition, preplanning allows you to become informed of Veterans Administration, Social Security, fraternal, civic and other benefits that may be available to your family at the time of death.

How to use PrePlan when applying for SSI/Medicaid?

Select a funeral director who offers PrePlan.
Select the funeral of your choice.
Completely prefund the arrangements and enter into an Irrevocable PrePlan Customer Agreement.
Inform your social worker that you have properly preserved those assets for your burial expenses by using PrePlan.

SSI/Medicaid allows

1. Personal Items - clothing, furnishings, appliances, jewelry, equipment, car
2. Cash (limited to $3,450 per individual or $5,000 per couple)

In hand
In bank
In trust (held by someone)
Stocks or other "cashable" assets Existing whole life insurance

3. PrePaid Irrevocable Contract for Funeral Arrangements you to have the following assets...