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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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Can I Transfer my Prepaid Funeral Plan?

Last week when I was speaking the question of whether you can transfer your prepaid funeral plans came up from two different groups.  The answer is yes, you absolutely can transfer your prepaid funeral plan from one funeral home to another.

In a previous blog I wrote about Eligible Funeral Arrangements (EFA).  The rules of an EFA mandate that the money set aside in a prepaid funeral plan is always the purchaser’s money.  As such the assigned funeral home does not have access to these funds until the funeral is actually provided.  The purchaser’s money is held by a third party that must insure these funds to $100,000.00.  Further, these funds must earn tax exempt interest, which is paid into the prepaid funeral certificate.  As your money is held in an escrow account, it is very easy to transfer the funds.

Assignment of Benefits Form must be completed

To transfer the prepaid funeral funds there is an Assignment of Benefits form that has to be filled out and signed by the purchaser.  With this one form the funds are reassigned to the new funeral home. The process generally takes about 4 weeks.

Is there a fee to do this?

The Funeral, Burial and Cremation Services Act sates that an administration fee may be charged to do this.  The fee is 10% of the value of the prepaid funeral plan to a maximum of $350.00.  Since 1998, for the people that I have assisted to transfer their prepaid funeral plan I have never charged this fee.

Why do people transfer their prepaid funeral plan?

As we live in an increasingly mobile society, people transfer their prepaid funeral plans for many reasons.  More often it is because one spouse has died and the surviving spouse is downsizing, moving closer to family, or relocating to a retirement community.

Whatever the reasons are to transfer the prepaid funeral funds, people are relieved to know that this money is always their money and the choice of funeral home is entirely within their discretion.

If you would like to know more about the process and the many different options for choosing the right plan for you, I invite you to connect with me.

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!

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