Search using the deceased name or any family name for any current or past services entrusted to our firm.

PRE-NEED                                                                                                                           Pre-Need is a funded account and prearranged legal contract filed with NCBFS, the funeral home and the bank.

Purpose

Allows the family of the beneficiary to not have to worry about financing a funeral or deal with the paperwork in the future. Depending on how the account is set up, all or a majority of the funeral will be paid for by the pre-need trust account.

Transferable

If you relocate or the funeral home goes out of business, a pre-need contract is transferable anywhere in the country since it is your money, not the funeral home’s. If there is any question or if you have lost your contract, it is on file with the NCBFS. Contact them.

NCBFS (NORTH CAROLINA BOARD OF FUNERAL SERVICE)

• Legal governing board of all funeral homes in North Carolina
• Located at 1033 Wade Avenue in Raleigh, NC
• Secure laws regulate all pre-need contracts (funded contracts)
• A pre-need filing fee of $20.00 goes to NCBFS in addition to contract amount
• Funds toward contracts are placed with a bank or insurance company; not the funeral home
• Annual funeral home preneed audit to keep track of records and money deposited
• Funeral homes can claim the money from the account of the beneficiary after proof of death

PRE-NEED: A CLOSER LOOK AT THE CHOICES

INSURANCE TRUST

• Preneed Licensed Funeral Director and Insurance Agent needed
• Rate depends on age, payment plan, type of plan and death  benefit amount
• Rates can be as high as 3.5% even in today’s economy
• Some ages cannot qualify for certain payment periods
• Some individuals may qualify for a death benefit much higher than paid premium
• Tax-free growth and not taxable to the estate
• Full payment or continued payments guarantee death benefit immediately
• If you can’t make scheduled premium payment your death benefit will be reduced
• Overfunding the trust is recommended to secure death benefit
• Statistically a pre-need insurance company is more secure than a bank

 BANK TRUST

• FDIC insured and interest compounded daily
• In NC many banks handle pre-need trusts but First Citizen Bank seems to handle the trusts best. They have a department specifically for funeral preneed accounts.
• 1099 tax form sent to depositor each year on annual interest earned
• Good growth in the long term
• Can’t lose money – principal always maintained and interest always earned beyond the principal
• No rigid payment schedule
• Interest is taxable
• Only a Pre-need Licensed Funeral Director needed