Why Use The New Jersey Prepaid Funeral Trust Fund™?
- Totally revocable with interest.
- Growth from day of deposit, FDIC insured.
- Competitive rates & flexible payment options.
- NO age limit & NO health questions.
- Available for SSI, Medicaid and General Assistance applicants.
What Is the New Jersey Prepaid Funeral Trust Fund™?
A funding vehicle that is immediately available upon the death of the
intended funeral recipient for payment of funeral expenses. Unlike traditional
savings vehicles which may close or become inaccessible at the time
of death, this account becomes payable.
The Trust Fund is managed in cooperation with one of New Jersey's largest
banking institutions. The funds are fully insured to the extent permitted
by law by the Federal Deposit Insurance Corporation (FDIC) and, at all
times, are totally refundable to the purchaser, with interest and without
penalty. (Your funeral director will discuss the way in which these
basic terms and conditions may be affected and modified by a prepaid
arrangement intended to qualify for SSI, Medicaid, or General Assistance
Exclusion.)
What Is The Benefit?
The Trust Fund provides a safe, well managed, trust earning interest
rates that should keep up with or surpass inflation. In this way, your
funeral director should be able to provide you with the funeral of your
choice no matter how much prices increase in the years ahead, as long
as the initial payment and interest remain intact.
How Does It Work?
At the time of prearrangement you will select the specific items of
funeral merchandise and services that you desire. Your funeral director
will determine the today's prices for your selection and provide you
with an itemized statement and the trust fund agreement in the amount
of those charges.
If you are prepaying you funeral for SSI or Medicaid eligibility, your
funeral director will make the necessary arrangements to ensure the
agreement will be accepted.
Your check (minimum initial deposit, 500) is made payable to the New
Jersey Trust Fund™. The funeral director will forward a copy of
your contract, together with your check, to the offices of the trust
fund.
How Is The Trust Fund Administered?
On the day that the trustees receive your contract, Social Security
Certification, and check, your money will be deposited into the Trust
Fund's time deposit, pooled investment to receive the highest rate of
interest. Shortly thereafter, you will receive a deposit acknowledgement
of your account.
Each year, the Trust Fund will send you a summery statement of the
principal and interest together with the internal Revenue Service's
required Grantor Tax Letter for you individual tax reporting. Interest
income is reportable if you are required to file with the Internal Revenue
Service.
The interest received by the Trust Fund will vary with prevailing jumbo
certificate of deposit (CD) rates, and the Trustees will only place
those funds into FDIC insured bank deposits.
The trustees receive 1.0% of the Trust Fund annually for their management
and their record keeping services.
What About SSI, Medicaid, and General Assistance?
If you or someone in your family may soon apply for assistance under
one of these programs, contact any funeral director who offers the New
Jersey Prepaid Trust Fund™. Federal and State law provide that
the properly trusted assets intended for the payment of funeral expenses
will not be considered as a resource when eligibility is determined.
This permits recipients to preserve assets that would normally be exhausted,
and in so doing ensure their funeral will be provided.
A program of the New Jersey State Funeral Directors Association Inc.
Administered by the New Jersey Funeral Directors Services Inc.
