A pre-paid funeral is a means of paying, or part paying funeral expenses in advance of their being needed.
Pre-paid Funerals are taken out for a variety of reasons such as peace of mind, or as a legal way of reducing one’s assets for Asset Testing purposes. For example, to qualify for the Residential Care Subsidy.
Under the FDANZ Funeral Trust, client monies are held by a major Trading Bank (currently Westpac New Zealand Limited) until the time of your death. At this time the amount paid into the Funeral Trust plus any interest accrued, less any fees applicable are used to pay your funeral expenses. If the balance is insufficient to pay all funeral expenses then a claim is made against the estate for any outstanding amount. Likewise, any money left over after funeral costs have been met will be returned to the estate.
To pre-arrange or pre-pay a funeral or for more information please contact us.