What is a funeral trust?

A funeral trust is a legal arrangement designed to manage and protect funds intended for funeral expenses until the time of need arises. This type of trust is specifically structured to ensure that the money set aside for funeral services is safeguarded and used solely for that purpose. By establishing a funeral trust, individuals can alleviate the financial burden on their loved ones at the time of death, ensuring that the funds are available for the selected services as intended.

While there are other financial instruments related to funeral planning, such as life insurance or bank accounts, a funeral trust specifically serves the unique purpose of earmarking funds exclusively for funeral costs, thus providing peace of mind to both the individual and their family. This focused arrangement differentiates it from methods like directly investing in funeral merchandise or other investment strategies, which may not have the same legal protections or guarantees for funeral-related expenses.