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Reinvest Your Tax Return in an Eligible Funeral Arrangement

Did you receive a tax return after filing your income taxes? Wondering what to do with your tax refund to get the best bang for your buck?  You work hard for your money, so why not have your money work hard for you a second time?

Investing in an Eligible Funeral Arrangement

You can use all or part of your tax refund to set up an Eligible Funeral Arrangement.

An Eligible Funeral Arrangement (EFA) is a fully prepaid or partially prepaid eventual funeral arrangement that you set up with a licensed Funeral Home and a licensed Funeral Director.

What Are the Advantages to an Eligible Funeral Arrangement?

  • The money in the EFA is always the purchaser’s money
  • Your funds are insured to $100,000.00
  • Your funds earn tax exempt 1.75% interest
  • There are no medical questions asked, everyone is accepted
  • Easy to enroll
  • It is a simple process
  • It is a loving gift to your family
  • You are in control of your money and your wishes
  • You lock in the future price of the funeral and the inflationary risk rests with the funeral home, not the purchaser

Why Is This a Good Investment?

Eventually we all will need to have some type of funeral to celebrate our life.  In addition to arranging your celebration, you have left your family with a funded funeral plan.

Don’t leave your family a funeral tab. Rather, leave them a solid plan now.  Instead, let your family know how you want your life to be celebrated.  Your loved ones will be relieved and grateful that you have let them know what you want done in the end and that there is money set aside to fund your plan.

I would love to hear from you and help get the conversation started.  You can connect with me via email or telephone, leave a comment here on the site or click the contact tab at the bottom of the screen if you are reading this post on the website. Don’t forget to join in the conversation on Facebook and Twitter too.

Until next time,

Kat

Katherine Downey is the #1 Funeral Preplanning Professional in Canada for the fourth time. She is a professional educator, author, licensed funeral director and insurance advisor. Not only is she a Certified Professional Consultant on Ageing and an Executive Advisor, but she is compassionately understanding.  To set an appointment or have your questions answered, please contact Kat directly

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What Happens to My Prepaid Funeral Plan If I Move?

I was asked this question three times this week; what happens to my prepaid funeral plan if I move?  And each time I gave the answer: when people set up a prepaid funeral plan the money within the plan is always the purchaser’s money.

The Canada Revenue Agency mandates that the funds within a prepaid funeral plan must be insured to $100,000.00 in the purchaser’s name.  These funds are also earning 2% tax exempt interest within the prepaid funeral plan.

The prepaid funeral plan is called an Eligible Funeral Arrangement (EFA) and this is only available via a licensed funeral home and a licensed funeral director.

As these funds are the purchaser’s funds, if the purchaser moves, these funds move with them.  Similarly if a person moves, their banking accounts, investments and other financial assets also move with them.

Changing the Assigned Funeral Home

When people move, the funds in the EFA are still their funds and the funeral home that the funds are assigned to is changed.  This is a very easy process.  All that is required is a letter from the purchaser asking that the EFA funds be reassigned to the desired funeral home.  There may be an administration fee to do this.  When people work with me, I have never charged this administration fee.

Review New Funeral Home Policies on Accepting Prepaid Funeral Plans

While the funds are easily transferred, there is a potential downside.  The reassignment of the EFA funds does not obligate the new funeral home to guarantee the future cost.  Having stated this, most funeral home are very willing to accept the prepaid funeral plan as this is a future funded funeral that is on their books.

It can be difficult to consider our own mortality, yet this is one certainty in life.  It is so much easier to solve this issue when we are alive, than to have your family thrown into having to plan a funeral when they are in emotional turmoil.

Do you have an EFA in place?  If you want to learn more or if you’re not sure what is important to have organized or how to do this than please click on the link below to purchase your PDF copy or hard copy of the Taking Care of Business – Executors Workbook to help you get started on being organized.  You can connect with me via email or telephone, leave a comment here on the site or click the contact tab at the bottom of the screen if you are reading this post on the website. Don’t forget to join in the conversation on Facebook and Twitter too!

Until next time,

Kat

Katherine Downey is the #1 Funeral Preplanning Professional in Canada for the fourth time. She is a professional educator, author, licensed funeral director and insurance advisor. To set an appointment or have your questions answered, please contact Kat directly.

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The Unexpected Tax Incentive Canadians Don’t Necessarily Want to Think About

A coffin with a flower arrangement in a morgue

My article “The Unexpected Tax Incentive Canadians Don’t Necessarily Want to Think About” was recently published by Gail Johnson in Yahoo Finance Canada.  I would like to share this article with you here.

There’s a tax incentive that some Canadians are dying to get.

Income earned on contributions made to an “Eligible Funeral Arrangement” is allowed to grow tax-free under Canada’s Income Tax Act. Read more