Final Expense Trusts:What Are They and Why You &

Your Clients Need Them?

• The Final Expense Trust – How to be a winner with final arrangement planning & funding

• Protecting Assets from Creditors• Winning Through Communication, Collaboration

& Preparation

• Presented by Steve Stanganelli, MSF, CRPC, CFP ®

1Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Steven Stanganelli, CRPC®, CFP®CERTIFIED FINANCIAL PLANNER ™ ProfessionalCHARTERED RETIREMENT PLANNING COUNSELOR (SM)

Steve Stanganelli, MSF, CRPC, CFP ®

Steve Stanganelli, a financial advisor since 1999, is a board-certified financial planning professional who has been awarded a five-star quality rating by Paladin Registry, an independent advisor rating service.

Steve’s fee-only financial planning practice focuses on providing practical advice to help clients make smarter financial decisions to preserve and protect wealth.

Steve holds the certification of CERTIFIED FINANCIAL PLANNER ™ and CHARTERED RETIREMENT PLANNING COUNSELOR designation.

Steve earned his Master of Science degree in Finance (MSF) from Bentley College with high distinction and a BA with honors from the University of Massachusetts – Lowell.

Practical Solutions for Everyday Life

Call: 978-388-0020Or 978-621-8268

Or Steve@focus-capital.com

For More Information: www.paladinregistry.com

2Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

PREPARING FOR THE INEVITABLE

Comprehensive planning includes preparing for the inevitable.

According to the American Association of Retired Persons (AARP) website, funeral expenses and final expenses can easily exceed $10,000.

So, when the inevitable day comes, how will your family be prepared to pay for your funeral?

Source: www.aarp.org, Preplanning Your Funeral Arrangements

3Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

So What Is a Funeral Trust? aka Final Expense Trust or

Burial Trust

A specific purpose insurance product that is irrevocable,

un-assignable and readily available to pay the actual costs of

a person’s final funeral, cremation and related expenses.

Proceeds from such a trust are portable and usable anywhere.

In addition, assets assigned to the trust are protected from creditors and are compliant with Medicaid, SSI and VA benefits.

4Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Funeral Planning is …

An often overlooked piece of the financial planning puzzle.

5Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Most Americans have never taken the time to fully discuss what would happen if they died today.

There are a lot of decisions that have to be made and very little help in making those decisions.

A trusted advisor or estate planning attorney is in a unique position to help clients make sure that they complete the final piece of the financial planning puzzle.

6Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Why Consider Advanced Funeral Planning?

More than 90% of Americans believe that pre-funding their funeral is a good idea.*

12% of those surveyed have worked with a funeral home to pre-plan.**

71% of Americans would like to set aside funds with a trusted advisor. ***

Sources:*American Funeral Director, January 2005 ** International Cemetery & Funeral Association, 2005 *** National Funeral Directors Association, Wirthlin Report, 1999

7Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Survey Says …

A study from the National Funeral Directors Association found the following regarding the most appropriate times to pre-fund a funeral:

80% find it appropriate to pre-fund when afflicted with a serious illness.

71% find it appropriate to pre-fund with their trusted advisor.

61% find it appropriate to pre-fund at retirement.

58% find it appropriate to pre-fund when planning retirement.

9% find it appropriate to pre-fund when solicited by a funeral home.

8Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

But Nobody Wants to Go!

The majority of advisors send their clients to a local funeral home …

NOBODY WANTS TO GO … It seems ghoulish

Yet, 90% of Americans believe that pre-funding is a good idea

9Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Who Benefits with Pre-Planning?

• Those over the age of 55

•Adult children worried about their parents

•Those who are “plan ahead” types who don’t want to burden their

Family at death

• Someone afflicted with a serious disease

•Folks who recognize the need but don’t want to go to a funeral home

10Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

The Win-Win-Win

CLIENTS WIN:

• Peace of Mind that they have “handled” a taboo topic

•They do no have to visit a funeral home until the actual needarises

• A Guaranteed Issue insurance product for ages 0 – 99 from a Best-rated company

• Dollar for dollar coverage

• Annual interest rate growth factor to help defray inflation costs

•VA & Medicaid benefit compliant

11Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Client Wins (continued)

• Creditor Protection – Cannot be attached by creditors, nursing homes, probate, estate taxes or Medicaid

•Tax-Free death benefits

• Funds immediately available Next Business Day – no waiting for assets tied up by death or probate

•No waiting for Death Certificate to release funds

• Transferable and portable benefit usable at any funeral/cremation provider in the country

•SSI Compliant

12Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Funeral Trust Benefits - Summary

• Death benefits are paid to any funeral home so client is not tied to a specific provider

• Excess of actual costs will be returned to the client’s named beneficiary in the estate

• Funds are protected from all creditors, probate, nursing homes, estate taxes and even Medicaid

• Immediately excluded asset in order to qualify for Medicaid

• A Trust transfer that is not penalized by Medicaid

• Maximum policy limits up to $12,500 in most states ($25,000 in MA)

13Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

How the Funeral Trust Works

Funeral Trust

Funeral and Service

Providers

Excess Funds paid to Estate

or Residual Beneficiary

Pre-Planning FundsUp to $12,500 *

Guaranteed IssueLife Insurance Policy

* Pre-Planning Funds can come from savings, 1035 Exchanges or investments and can create a trust or trusts with a cumulative value of $12,500 (or $25,000 in MA)

Policy Assigned to

Death BenefitGROWS – Tax Free!

Submit claims and invoices

Funds avoid probate and delays;Funeral expenses covered immediately

Claims PaidNext Day

14Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Comparing Methods of Pre-FundingBenefits paid directly to any Funeral Home

Protected from Probate

Protected from Lawsuits & Creditors

Protected from Income Taxes

Protected from Medicaid Spend Down

Savings NO NO NO NO NO

Annuity NO YES Depends on State

NO NO

Traditional Life Insurance

NO YES Depends on State

YES NO

Funeral Trust thru Specific Life Insurers

YES YES YES YES * YES

* Consult with an elder law attorney to see if this product will work with your specific needs and circumstances.

15Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

List of possible goods and services qualifying for reimbursement:

Basic Services of Funeral Director & StaffOther Professional ServicesEmbalmingCare for the Deceased

Dressing, Cosmetology, CasketingFuneral Home Facilities and Staff Services

Viewing/VisitationFuneral, Memorial and Graveside Services

MerchandiseClergy HonorariumDeath CertificatesMusiciansTemporary MarkersObituary NoticesFlowersClothing

16Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Services qualifying for reimbursement(continued)

Casket

Alternative Container

Outer Burial Container

Transportation & Driver

Cemetery Charges

17Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information)

Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information) 18

Lessen the burden for your loved ones by planning ahead for the inevitable.

Pre-funding your final expenses is extremely important and it is also necessary to record your final wishes, to lessen the burden on your family in one of their most difficult times.

To learn more about safeguarding your legacy and the peace of mind offered through comprehensive planning, please call to arrange an initial consultation and review.

New clients are eligible for complimentary benefits:

Safeguard Your Legacy … Plan for the Possible …

Prepare for the Inevitable

Steve Stanganelli, MSF, CRPC, CFP ® 978-388-0020 or 978-621-8268

Safeguard Planning Benefits

Steve Stanganelli, MSF, CRPC, CFP (Call 978-388-0020 for more information) 19

Planning Guide: Helps you share with your loved ones the historical information about your life and family values you hope to pass on and keep alive.

Planning Archive: Secure storage of important information needed to complete a Death Certificate and record final wishes to reduce the stress and confusion among family members during a difficult time.

End of Life Planning Assistance: On call advisors to assist in guiding family members through the funeral planning process and assisting with price negotiation.

Support for Survivors: On call advisors can recommend grief counseling programs as well as inform distant traveling family members about bereavement travel options and discounts available to them.