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Economic Update-Funeral Trusts

Funeral Planningfor High Net-Worth Clients using an

NGL Estate Planning Trust

As you are aware, the use of an Irrevocable Funeral Trust is an outstanding tool to protect client assets from creditors and potentially from Medicaid spend-down requirements.  These needs are often associated with Middle America and the Irrevocable Funeral Trust is a great fit for this demographic.  However, the benefits of funeral planning go beyond asset protection alone and this makes funeral planning for High Net-Worth clients a viable option as well.

The number one reason High Net-Worth clients have for pre-planning funeral arrangements is thePeace of Mind in knowing that they have made things as easy as possible for their loved ones during a time of grief and loss. Clients can be assured that their final arrangements have been made as per their wishes, are fully paid for, and that their family is spared an unnecessary and very difficult task.

Funeral planning for High Net-Worth clients should be viewed as a logical extension of estate planning and can be accomplished through the use of an NGLEstate Planning Trust.

The NGL Estate Trust is an Irrevocable Trust for use with High Net- Worth clients.  The life insurance application for the Estate Trust is the same as that of the Irrevocable Funeral Expense Trust but with a few notable exceptions:

  1. The opportunity for the client to invest $50,000 in the Estate Trust vs. $15,000 in the Irrevocable Funeral Trust.
  2. Funds are excluded from Medicaid spend-down after  the five year look back instead of immediately
  3. Funds that exceed the funeral costs will be paid out to a named beneficiary versus being paid to the estate

By using the NGL Estate Planning Trust to assist your High Net-Worth clients in pre-planning their funeral arrangements, you accomplish three very important goals:

  1. Peace of Mind for clients (They want to make things as easy as possible for the family during their time of need)
  2. Excess funds will be paid directly to named beneficiaries, will avoid probate, protected from creditors, and Medicaid Exempt after the five years.
  3. Benefit paid Income Tax-Free (IRC Code Sec. 101a)

Additional benefits of the NGL Estate Planning Trust with Legacy Safeguard include:

  • The Trust pays the funeral home the very next day in many cases and without the need for a death certificate.Any remaining money goes directly to a named beneficiary.
  • Includes “Legacy Safeguard”, a comprehensive legacy planning service that comes free of charge as a value added rider.  Legacy Safeguard includes:
    • Legacy Safeguard Planning Guide – A comprehensive planning guide that helps clients share with their loved ones the historical information about their lives, the lessons they have learned and the family values they want passed down.
    • End of Life Planning, Guidance & Assistance – Provides 24/7 funeral planning assistance for your family by locating funeral homes in the area and aggressively negotiating the price providing significant savings.
    • Support for Survivors – Educates your client’s family on Bereavement Travel options and recommends Grief Counseling Support programs.

Whether you use the NGL Irrevocable Funeral Trust with Legacy Safeguard for Middle America or the NGL Estate Planning Trust with Legacy Safeguard for your High Net-worth clients,you can be assured that you haveprovided your clients and their families with a high quality product designed specifically for their needs and providing outstanding protection and support.

NGL Trusts provide peace of mind for your clients today, peace of mind for your clients loved ones tomorrow, and Guidance and Support for your client’s family in the future.

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