As licensed funeral service establishments doing business in the State
of Maine there are only several types of funding options that are available
through Brookings-Smith:
- Maine Mortuary Trust Agreements
- Life insurance – purchased through an insurance agent (not
a funeral director)
- Personal savings
- Managed by family
- Managed by a Trust Officer through a financial institution
Maine Mortuary Trust Agreements are the most common funding contracts
used through a funeral service establishment. A Credit for Services
Trust essentially uses whatever funds that have been placed in trust
as a credit towards whatever services were selected at the time of
passing. If there are more funds in the trust then what the expense
is then the family would be refunded the difference, or the family
would be required to pay the difference if there was inadequate funding
to cover the expense. A Guaranteed Payment Trust is used when the
trust is fully funded at the time it is set up and no matter the
costs at the time of passing – more or less then the funding – Brookings-Smith
will complete the services as originally contracted. These trusts
are established as Irrevocable Agreements so that the funds cannot
be taken out of the financial institution that holds them so that
they are there for the unforeseen future. The interest gained from
the balance held in trust may be considered income to the person
that the trust is to benefit for tax purposes. It is possible to
establish a mortuary trust so the trust can pay the tax.
E-mail us: info@brookingssmith.com
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