his may well be the most misunderstood aspect of the funeral profession. We get more questions regarding Funeral Trusts and Prearrangements than any other topic. It needs to be pointed out that in Minnesota, any money set aside for a funeral must be held by an insurance company (burial insurance) or by a bank, or credit union. Money is NEVER kept by the funeral home. This protects the money from loss and insures that the family and decedent have a right to choose a funeral home at the time of death.

In case of a Funeral Trust, money is set into a special kind of trust at the bank and held in a Savings Certificate of Deposit. A Funeral Home MUST be listed on the Savings Certificate as the Account Trustee. The funeral home is then required to make annual reports to the State Department of Health as to any activity in the account. The account may also be set up according to Human Services Guidelines in order that the funds will be available at the time of death and will not be "Spent Down" to qualify for assistance (Nursing Home Costs, etc.). Proper forms must be used to assure that the account is within Human Services Guidelines and these forms are all completed by the funeral home.

Once a Funeral Trust is established, ANY funeral home may provide the services. A change in funeral home may be made by the family or the decedent prior to, or at the time of death, for many reasons. For example: the original funeral home may no longer exist, the original funeral home may have changed ownership, the decedent may have moved to another town or state or the family or decedent may simply have selected a different funeral home. These things happen often and the funeral home chosen to provide the funeral services can arrange with the original funeral home to transfer the Funeral Trust and any Prearrangements which may have been made. Minnesota Law requires that families have a choice as to the funeral home called to provide services.

Prearrangements are simply the listing of information and wishes made by the decedent and/or family. They are completely transferable to another funeral home. Questions about any Prearrangements that a family may wish to transfer, should be directed to the funeral home chosen to provide the funeral services. That funeral home will then communicate with the original funeral home and do any necessary paperwork in order to transfer the Prearrangement and/or Funeral Trust.
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