Pre-paid Funerals – the advantages

Advantages of Pre-paid Funerals
At the death of their loved one, families often experience unwanted extra stress from needing to find money for funeral expenses. It is an untimely worry piled on top of grieving, and the stress of selling assets. You can solve this problem for yourself and your family here and now. Use our trusted facilities to establish a fund that will cover your funeral expenses. It will be great for both your own and your family's peace of mind. It can also increase the value of your estate if you need to take residence in a rest home or hospital.

Choices
There are a number of options as to how your contributions are made, and there are many choices about how elaborate, or plain, your funeral could be. You do not have to specify anything about your actual funeral arrangements – but if you wish, we can direct you to funeral homes in your area.

Investment
This is an investment as well, so it will generate conservative earnings and perhaps funds over and above funeral costs. These are added to the estate for the benefit of your heirs. This is something else they will thank you for!

Asset Testing for Rest Home Subsidies
The availability of rest-home subsidies or geriatric hospital subsidies (formally called the Residential Care Subsidy) has always depended on asset testing. Here are the current thresholds:

This page updated 6th September 2008

For a single person to qualify for a Residential Care Subsidy, his or her total assets must be $180,000 or less.

For a person whose partner is also in long-term residential care, the threshold is the same – total assets of $180,000 or less.

For a person whose partner is not in care, there is a choice of two options to establish the threshold:
Either, $85,000 not including the value of their house* and car.
Or, $180,000 including the value of their house and car.

*The house is only exempt from the means test if it is the permanent residence of the other partner or of a dependant child.

From July 1, 2009 until June 30, 2010, the threshold figures become $190,000 and $95,000

Each year, those thresholds increase by $10,000.

However, the Government allows a person to have up to $10,000 set aside in a Funeral Trust, and that is exempt from asset testing. Also, the net income earned from your Funeral Trust account is exempted, provided your Trust does not exceed $10,000.

There is still a clear $10,000 advantage in being able to take advantage of this allowance. Otherwise, your funeral expenses simply come out of your residual assets upon your death.

A fast-growing idea
The concept of pre-paid funerals is very popular overseas. The USA leads the way with 50 per cent of all funerals being paid from pre-paid arrangements. This is more than 12 times the New Zealand number. But New Zealand is catching up – because the advantages are being recognised. In Australia, the pre-paid funeral concept is four times greater than it is in New Zealand.

Independence
The system offered by Prepaid Funerals New Zealand Ltd is independent of any particular funeral director or group. It is not a pre-arranged funeral scheme, rather a pre-paid scheme so that the funeral director of choice can be commissioned and paid for when the time comes. The only link to another organisation is the link that exists between us and Guardian Trust, to safeguard your investment and give you every assurance of that safeguard.

This information updated 6th September 2008

All
About
Peace
of
Mind

All About Peace of Mind

All
About
Peace
of
Mind