| WHAT ARE THE BENEFITS OF PREPLANNING AND PREPAYING A FUNERAL? |
Preplanning and prepaying a funeral is a safe and secure way to plan for the eventual tomorrow. The knowledge that you took the time to take care of preplanning may be one of the kindest gifts you can give your loved ones.
Most family members are greatful when the arrangements and planning have been completed prior to the death of a loved one. Preplanning can clearly save time, avoid stress, and lessen confusion, giving family more time to say a final "good-bye". |
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| Who can preplan a funeral? |
| A person can preplan their own funeral. The family may also do it for a family member. The best way is to plan together. Making your wishes known leaves less guess work to those that survive and must do the planning. |
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| WHAT IS MY FIRST STEP? |
| Contact your local funeral home for details on setting up a prearrangement. The funeral director will assist you in selecting both services and merchandise that meet your budget and satisfaction. There are two ways to prepay a funeral contract. The first method is to make payment in full for all services and merchandise you have selected. The second is to make a down payment and equal monthly payments towards the cost of the services until paid in full. |
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| What happens to the money I paid the funeral director? |
| The money is deposited into a third party escrow account. It never enters the Sorenson-Lockwood Funeral Home bank account. The escrow funds used at Sorenson-Lockwood Funeral Home are the MFDA Master Escrow Plan, a subsidiary of the Michigan Funeral Directors Association which administers the Plan. The Association is located in Lansing, Michigan. The other fund used at SLFH is The JP Morgan Trust Department located in Grand Haven, MI. where funds are held on your behalf. Regardless of the escrow fund utilized, you will receive a letter acknowledging the deposit of funds. If you do not receive such a letter, notify the funeral director immediately. |
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| WILL MORE MONEY HAVE TO BE PAID WHEN THE FUNERAL IS ACTUALLY HELD |
| If the contract is designated as a "guaranteed price agreement," it has been paid in full and there are no changes in the choice of services and merchandise, the answer is "no." If it is designated as a "non-guaranteed price agreement" the family will be responsible for any difference between the current charges at the time of the funeral for the goods and services selected and the amount in th escrow account. If you are not sure of which kind of agreement you have purchased, ask the person with whom you set up the agreement. |
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| What if I move away or change my mind |
The contract can be canceled at any time for any reason and, by law, you are entitled to receive a minimum of a 90% refund of both your original payment and accumulated interest in your escrow account. Just notify the funeral director and she/he will assist you to make different arrangements or arrange for a refund within 30 days.
( NOTE:Some contracts may be certified "irrevocable" by the Department of Social Services, currently Department of Human Services, in order to allow a person to become eligible for Medicaid assistance. Irrevocable contracts CANNOT be canceled for any reason, although it is normally possible to transfer performance to another funeral home. |
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| WHAT SHOULD BE DONE WHEN DEATH OCCURS |
| The family should call the funeral home at which the funeral was preplanned immediately. They are available 24 hours a day, 7 days a week. Even if death occurs away from the local area, the family should still call the funeral director back home. He/she will make the necessary professional contacts for you, including, if necessary, a funeral home in the location of the death. Although the funeral home will usually remember or know from their records, be sure to remind them that there is a prepaid funeral agreement. |
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| WHO PAYS TAXES ON THE INCOME IN THE ESCROW ACCOUNT? |
| Under rulings of the U.S. Internal Revenue Service, the owner (normally the purchaser) of the contract has the tax responsibility. Accordingly, you will have been asked to sign an IRS W-9 form. You will be mailed a statement each January setting out the amount of money you need to add to your taxable income. Normally the resulting amount of tax is very small. |
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What should I do if I have any questions or have a complaint?
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| Contact the funeral home with which you have the prearrangement. Normally they can handle any questions or problems you might have. In the rare instance that you do not receive satisfaction from your contact with the funeral home, you may contact the MFDA Master Escrow Plan at 1-517-349-9565, but it is more convenient for everyone if yo always contact the funeral home first. |
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