PREPLANNING AND
PREFUNDING A FUNERAL
Presented by
Edward D. Jamie, Jr. Funeral Chapel
217-04 Northern Blvd. (Suite 23)
Bayside, New York 11361
(718) 224-2390
A Proud Member of the New York State Funeral
Directors Association PrePlan Trust Program
What Is Preplanning?
Preplanning is the process of
prearranging and/or prefunding
funeral merchandise and services to
be provided in the future.
What Is Preplanning?
When an individual prepays for a funeral, they are
placing the cost of the funeral (at today’s prices) in
an investment vehicle, so that the interest earned
will keep up with inflation to cover the cost of the
funeral (at future prices) when the death occurs.
Benefits Of Preplanning

Relieves your family of making difficult
decisions during their time of grief.
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Choose how you wish to be remembered and
ensure that your personal wishes are carried out.

Medicaid recipients may set aside funds for their
funeral expenses in an irrevocable preneed
account which will be excluded as a countable
resource. They may also set aside funds for
specific family members.

It saves loved ones from the sudden expense of
a funeral.
Who Owns the PreNeed Account?
Until the funeral home has
actually provided the merchandise
and services, the purchaser
remains in control of the account
and can change arrangements
and/or their choice of funeral
home at any time.
Prearranging a Funeral is Easy

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Select a funeral home
Meet with funeral director
Review General Price List
Select desired services and
merchandise
Next…

Funeral Director prepares
a fully itemized statement
and preneed agreement.

Both funeral director and
purchaser sign documents
and purchaser receives
copies of all.
Finalize

Purchaser submits a check for
the cost of the funeral or
arranges a payment plan.

The funeral director forwards
the funds to a bank or trust
such as the New York State
Funeral Directors Association
master trust, PrePlan.

The purchaser receives a
deposit acknowledgement
within 30 days, indicating
where the money has been
placed.
New York State Preneed Laws
New York State has the strongest consumer protection
preneed laws in the nation.

A Purchaser shall receive an itemized statement of goods and
services selected, a general price list, and a pre-need agreement.

The funeral director must deposit the funds in a financial
institution or trust in a U.S. government-backed investment
within 10 business days.

In New York State, funeral directors cannot charge a consumer
any fee for prearranging a funeral.
NYS Preneed Laws, continued

The purchaser shall be notified of the institution where
the deposit was made within 30 business days of the
initial deposit.

Each year, the purchaser shall be notified by written
statement of all account activity and interest earned.

All monies paid and interest earned on a revocable
agreement shall be returned upon the demand of the
purchaser or their legal representative.
Irrevocable Accounts
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Restricted to applicants for or
recipients of Medicaid/SSI and
specific family members of the
applicant/recipient.
Funds may not be withdrawn prior
to the occurrence of death.
Funeral homes may be changed at
any time.
Excess funds after the funeral
expenses must, by law, be
forwarded to the county.
Revocable Accounts

Funds may be withdrawn at
any time prior to death
(including all principal and
interest) without penalty.

Any overage remaining in the
account after the funeral
services have been provided
must be disbursed to the
decedent’s estate.
If A Funeral Home Closes

Funeral service is strictly regulated by the NYS Health
Department Bureau of Funeral Directing.

All accountholders must be notified in writing within
30 days of a funeral home closing. They may then
choose to transfer their preneed account to another
funeral home or request a refund of their deposits plus
all interest earned.

The Bureau of Funeral Directing closely monitors the
process and receives information on the resolution of
all preneed accounts.
Who Is Preplan?

PrePlan is a preneed trust program sponsored by the
New York State Funeral Directors Association.

Serving New York’s consumers since 1988

Accredited by the Better Business Bureau with A+
rating
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Over 80,000 consumer accounts
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Over $600 million dollars in trust
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600 member funeral homes
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Audited quarterly and annually by an independent
auditing firm
How PrePlan Protects Your Funds
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For the security and stability of the monies entrusted to
PrePlan, funds are invested into FDIC insured
Certificates of Deposit.
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The portfolio of CD’s is strategically diversified among
30 different highly rated banks.
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Investments are overseen by five PrePlan Trustees who
are actively engaged in funeral service, with the
assistance and expertise of an investment advisory firm.
Do You Have Questions?

Log on to www.nysfda.org for
valuable information about many
end of life topics including
preplanning and to request any of
our helpful brochures.

Call PrePlan at (800)577-3752 and
talk to one of our knowledgeable
PrePlan administrators.