Your money is safe in The Funeral Trust

Prepaying a funeral is not just important for peace of mind, it can also be a key factor when you are applying for the residential care subsidy, says Liz Hill, Director, at Harvey Bowler Funeral Services.

In order to get access to the residential care subsidy, applicants need to show that their assets fall below a certain threshold. For a two-person household, this threshold is currently $256,554, including the assets of both you and your partner, if you decide to include the assets of your house and car in your application.

This often means that people on the cusp of this threshold end up looking for ways to dispose of their assets, in order to receive the subsidy. For people in this position, it may be helpful to know that funds put towards a prepaid funeral are exempt from asset testing, up to a maximum of $10,000. So where does that money go, when it is set aside for a prepaid funeral? Harvey Bowler recommends that people avoid funeral insurance, and instead look to place their funds with The Funeral Trust.

The Funeral Trust is used by the majority of FDANZ approved funeral homes. The fund is administered by the trustees, so you are protected even if your funeral director goes out of business. And the funds deposited attract interest, like any investment, and are diversified across a portfolio of assets. “With funeral insurance you just don’t know where your money is going,” says Liz, “whereas with The Funeral Trust, it’s a lot like Kiwisaver as the funds you pay are in your own name.”

The Funeral Trust offers peace of mind, protection, and returns and ensures that any excess funds are returned to your estate. Harvey Bowler Funeral Services utilises The Funeral Trust. To find out more about The Funeral Trust, call Harvey Bowler on 0800 33 22 73 or stop in to make an appointment at 284 Oxford Street, Levin.