What is a Trust?
A trust is a fiduciary relationship in which a person or institution (trustee) holds legal title to money or property for another person (grantor).
Trusts are typically established to:
1) Create growth and wealth
2) Protect and preserve wealth
3) Distribute assets advantageously during life
4) Distribute assets advantageously during death
What does it mean to have a preneed trust?
A funeral trust is used by a funeral home to deposit funds received from the purchaser of a pre-arranged funeral. These funds, along with any income earned while the funds are held in the trust, are used to pay for the funeral expenses at the time of the recipient’s/beneficiary’s death.
Trusts are commonly funded with marketable securities (stocks, bonds, money market, insurance policies, FDIC insured products, and annuities).
What does it mean to have a guaranteed contract?
Any items selected and listed as guaranteed on your preneed funeral contract and supplied by the funeral home at-need will not require additional payment from the family. This does not apply to cash advance items.
If I have a guaranteed contract, when does it become guaranteed?
The contract is guaranteed when all payments have been made in full, per the terms of the preneed contract.
Are the earnings in the trust taxable? How is it reported to the IRS?
Earnings are considered taxable by the IRS. Each seller can elect to have the trust pay the tax or to have the consumer receive a Grantor letter.
Is there someone at ClearPoint I can call to confirm my balance due?
Yes, you can call the ClearPoint Customer Service number at 800-763-0234. If ClearPoint is the contract recordkeeper, we can provide some information regarding your agreement. Otherwise, you will need to contact your pre-arranged service provider.
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