PREPLANNING AND PREPLANNING AND PREFUNDING A PREFUNDING A

FUNERALFUNERALPresented byPresented by

Edward D. Jamie, Jr. Funeral ChapelEdward D. Jamie, Jr. Funeral Chapel217-04 Northern Blvd. (Suite 23)217-04 Northern Blvd. (Suite 23)

Bayside, New York 11361Bayside, New York 11361(718) 224-2390(718) 224-2390

A Proud Member of the New York State A Proud Member of the New York State Funeral Directors Association PrePlan Funeral Directors Association PrePlan

Trust ProgramTrust Program

What Is Preplanning?What Is Preplanning?

Preplanning is the process Preplanning is the process of prearranging and/or of prearranging and/or prefunding funeral prefunding funeral merchandise and services merchandise and services to be provided in the future.to be provided in the future.

What Is Preplanning?What Is Preplanning?

When an individual prepays for a funeral, When an individual prepays for a funeral, they are placing the cost of the funeral (at they are placing the cost of the funeral (at today’s prices) in an investment vehicle, so today’s prices) in an investment vehicle, so that the interest earned will keep up with that the interest earned will keep up with inflation to cover the cost of the funeral inflation to cover the cost of the funeral (at future prices) when the death occurs.(at future prices) when the death occurs.

Benefits Of PreplanningBenefits Of Preplanning Relieves your family of making difficult Relieves your family of making difficult

decisions during their time of grief.decisions during their time of grief.

Choose how you wish to be remembered Choose how you wish to be remembered and ensure that your personal wishes are and ensure that your personal wishes are carried out.carried out.

Medicaid recipients may set aside funds Medicaid recipients may set aside funds for their funeral expenses in an for their funeral expenses in an irrevocable preneed account which will be irrevocable preneed account which will be excluded as a countable resource. They excluded as a countable resource. They may also set aside funds for specific may also set aside funds for specific family members.family members.

It saves loved ones from the sudden It saves loved ones from the sudden expense of a funeral.expense of a funeral.

Who Owns the PreNeed Who Owns the PreNeed Account?Account?

Until the funeral home has Until the funeral home has actually provided the actually provided the merchandise and services, merchandise and services, the the purchaserpurchaser remains in remains in control of the account and control of the account and can change arrangements can change arrangements and/or their choice of and/or their choice of funeral home at any time.funeral home at any time.

Prearranging a Prearranging a FuneralFuneral is is EasyEasy

Select a funeral homeSelect a funeral home Meet with funeral Meet with funeral

directordirector Review General Price ListReview General Price List Select desired services Select desired services

and merchandiseand merchandise

Next…Next…

Funeral Director Funeral Director prepares a fully prepares a fully itemized statement and itemized statement and preneed agreement.preneed agreement.

Both funeral director Both funeral director and purchaser sign and purchaser sign documents and documents and purchaser receives purchaser receives copies of all.copies of all.

FinalizeFinalize Purchaser submits a check Purchaser submits a check

for the cost of the funeral for the cost of the funeral or arranges a payment or arranges a payment plan.plan.

The funeral director The funeral director forwards the funds to a forwards the funds to a bank or trust such as the bank or trust such as the New York State Funeral New York State Funeral Directors Association Directors Association master trust, PrePlan.master trust, PrePlan.

The purchaser receives a The purchaser receives a deposit acknowledgement deposit acknowledgement within 30 days, indicating within 30 days, indicating where the money has been where the money has been placed.placed.

New York State Preneed New York State Preneed LawsLaws

New York State has the strongest consumer New York State has the strongest consumer protection preneed laws in the nation. protection preneed laws in the nation.

A Purchaser shall receive an itemized statement of A Purchaser shall receive an itemized statement of goods and services selected, a general price list, goods and services selected, a general price list, and a pre-need agreement.and a pre-need agreement.

The funeral director must deposit the funds in a The funeral director must deposit the funds in a financial institution or trust in a U.S. government-financial institution or trust in a U.S. government-backed investment within 10 business days.backed investment within 10 business days.

In New York State, funeral directors cannot In New York State, funeral directors cannot charge a consumer any fee for prearranging a charge a consumer any fee for prearranging a funeral.funeral.

NYS Preneed Laws, NYS Preneed Laws, continuedcontinued

The purchaser shall be notified of the institution The purchaser shall be notified of the institution where the deposit was made within 30 business where the deposit was made within 30 business days of the initial deposit.days of the initial deposit.

Each year, the purchaser shall be notified by Each year, the purchaser shall be notified by written statement of all account activity and written statement of all account activity and interest earned.interest earned.

All monies paid and interest earned on a All monies paid and interest earned on a revocablerevocable agreement shall be returned upon the agreement shall be returned upon the demand of the purchaser or their legal demand of the purchaser or their legal representative.representative.

Irrevocable AccountsIrrevocable Accounts Restricted to applicants for Restricted to applicants for

or recipients of Medicaid/SSI or recipients of Medicaid/SSI and specific family members and specific family members of the applicant/recipient.of the applicant/recipient.

Funds may Funds may notnot be withdrawn be withdrawn prior to the occurrence of prior to the occurrence of death.death.

Funeral homes may be Funeral homes may be changed at any time.changed at any time.

Excess funds after the Excess funds after the funeral expenses must, by funeral expenses must, by law, be forwarded to the law, be forwarded to the county.county.

Revocable AccountsRevocable Accounts

Funds may be Funds may be withdrawn at any time withdrawn at any time prior to death prior to death (including all principal (including all principal and interest) without and interest) without penalty.penalty.

Any overage Any overage remaining in the remaining in the account after the account after the funeral services have funeral services have been provided must been provided must be disbursed to the be disbursed to the decedent’s estate. decedent’s estate.

If A Funeral Home ClosesIf A Funeral Home Closes Funeral service is strictly regulated by the Funeral service is strictly regulated by the

NYS Health Department Bureau of Funeral NYS Health Department Bureau of Funeral Directing.Directing.

All accountholders must be notified in writing All accountholders must be notified in writing within 30 days of a funeral home closing. within 30 days of a funeral home closing. They may then choose to transfer their They may then choose to transfer their preneed account to another funeral home or preneed account to another funeral home or request a refund of their deposits plus all request a refund of their deposits plus all interest earned. interest earned.

The Bureau of Funeral Directing closely The Bureau of Funeral Directing closely monitors the process and receives information monitors the process and receives information on the resolution of all preneed accounts.on the resolution of all preneed accounts.

Who Is Preplan?Who Is Preplan? PrePlan is a preneed trust program PrePlan is a preneed trust program

sponsored by the New York State Funeral sponsored by the New York State Funeral Directors Association.Directors Association.

Serving New York’s consumers since 1988Serving New York’s consumers since 1988 Accredited by the Better Business Bureau Accredited by the Better Business Bureau

with A+ ratingwith A+ rating Over 80,000 consumer accountsOver 80,000 consumer accounts Over $600 million dollars in trustOver $600 million dollars in trust 600 member funeral homes600 member funeral homes Audited quarterly and annually by an Audited quarterly and annually by an

independent auditing firmindependent auditing firm

How PrePlan Protects Your How PrePlan Protects Your FundsFunds

For the security and stability of the monies For the security and stability of the monies entrusted to PrePlan, funds are invested into entrusted to PrePlan, funds are invested into FDIC insured Certificates of Deposit.FDIC insured Certificates of Deposit.

The portfolio of CD’s is strategically The portfolio of CD’s is strategically diversified among 30 different highly rated diversified among 30 different highly rated banks.banks.

Investments are overseen by five PrePlan Investments are overseen by five PrePlan Trustees who are actively engaged in funeral Trustees who are actively engaged in funeral service, with the assistance and expertise of service, with the assistance and expertise of an investment advisory firm.an investment advisory firm.

Do You Have Questions?Do You Have Questions?

Log on to Log on to www.nysfda.org for for valuable information about valuable information about many end of life topics many end of life topics including preplanning and to including preplanning and to request any of our helpful request any of our helpful brochures.brochures.

Call PrePlan at (800)577-3752 Call PrePlan at (800)577-3752 and talk to one of our and talk to one of our knowledgeable PrePlan knowledgeable PrePlan administrators.administrators.