Funeral Preplanning || About Forethought Plans || Trust Plans || Estate Planning || Government Benefits
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Funeral Pre-Planning

You Plan For All The Important Things In Life …

The process of setting out one’s wishes and instructions to be followed at the time of death is called funeral pre-planning.

Over 80% of Americans over the age of 30 think funeral planning is a good idea, and 40% say they are likely to plan within the next five years.†

What gets people interested in planning a funeral?

• Experiencing the overwhelming details of the funeral of a loved one
• Getting affairs in order-writing a will, constructing an estate plan
• Reaching a milestone birthday
• Nearing retirement

† The Wirthlin Group's 1999 Study of American Attitudes Toward Ritualization and Memorialization

People plan carefully for the things that are important in their lives….their wedding, the purchase of a home, saving for a child’s education or financial independence in their retirement years.

But oftentimes, the important decision regarding what will happen at the time of their death is left to someone else. Surviving family members then act without knowing if they are carrying out the wishes of the person who died. Those who have experienced the death of a family member would agree, such knowledge would be welcomed by a family during those early days of dealing with their emotions.

People today want more from funerals. They want them to be a reflection of the individual and a celebration of life. Personalized funerals are more meaningful – a chance to think about what made the person special and unique.

However, a personalized funeral is more involved than a standard service, and requires prior planning. It’s very important to write down the details ahead of time, and share them with your family members. Your funeral director can help you plan and record everything, and keep your wishes on file until the need arises.

Although funeral pre-planning is not a new concept, many people have difficulty addressing their own death in such a frank and open manner.

The Staff of Van Dyk – Duven Funeral Home can help. Our understanding and professional approach can ease the awkward feelings, fostering a sincere and complete discussion regarding death and burial.

The benefits of funeral planning and funding are many…

• Making your wishes known provides comfort and peace of mind. Communicating your preferences is especially helpful if you have several children or if you or your spouse have children from previous marriages who must come to agreement.
• Funeral planning spares your family the emotional burden of making difficult decisions at the time of need.
• The major decisions have been made so loved ones will have few details to review. Letting your family make some decisions, such as collecting photos to display, assists them in the grieving process by allowing them to care for you.
• By funding your plan today, you can relieve the financial burden on your family at a very difficult time. They will not have to worry about where the money will come from.

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What Are the Steps To Funeral Pre-Planning?

A Simple 3 - Step Process
Of all the things you can do for your family, planning and funding your funeral may be one of the most considerate and caring. No other thing will do as much to ease their minds and comfort them in their time of loss. It's something you can do now free of charge, it's easy, and it's affordable.

Step 1 – Gathering Information
This is just a matter of putting down all your biographical information about your life, career and your family. All the facts you’ll want everyone to know and remember. This is also a good time to write down all the personal information that will make your funeral more meaningful, things like hobbies and special interests. For your convenience we have enclosed a PERSONAL INFORMATION GUIDE.

Step 2 – Making Arrangements
With this step, you’ll sit down with a funeral director and make choices about your funeral or memorial service, what type of casket or urn, vault, the services you want, and other details. We will explain all your options, outline the costs, and make recommendations if you would like. It’s easy and convenient and it only takes about 30 minutes.

Step 3 – Funding The Funeral
Van Dyk - Duven Funeral Home offers pre-funding through ForethoughtÒ plans and trust accounts, which let you completely alleviate the financial burden on your family. A funeral director will work with you to set up a pre-funded plan to fit your budget. Any pre-funded funeral arranged with any other funeral home in the area may be transferred to Van Dyk – Duven Funeral Home so you may be able to receive a better value. Should you move or relocate, your plan is transferable to a funeral home in your new community.

When payment is in full or in part is made for the services specified in your funeral arrangements plan, Iowa law states specific guidelines to follow. Guidelines state that either a ForethoughtÒ plan, or one like it must be established if a trust fund has not already been established. In addition, when completing a pre-arrangement contract, Iowa law specifies that 80% of payments made to the funeral home be deposited. Van Dyk – Duven Funeral Home deposits 100% of the total sum of funds contributed into your account.

Whether payment is made in full or a schedule is set up for payment on time, we retain no part of your funds for any administrative expense of funeral pre-planning.

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About Forethought Plans

Van Dyk – Duven Funeral Home strives to offer service that is adaptable to the desires of each and every person who requests our help. We are members of the Forethought Group, the network of funeral planning professionals. This means we are fully qualified and authorized by Forethought Life Insurance Company, Batesville, Indiana, to help you with a whole life insurance policy designed and approved specifically for funeral planning.

Benefits of a Forethought Plan

• Peace of Mind

Of all the things you can do for your family, planning and funding your funeral may be one of the most considerate and caring. Nothing will do as much to ease their minds and comfort them in their time of loss.

• No Income Taxes, Tax Free Benefits
• No 1099 forms issued
• Guaranteed issue, immediate coverage
• Descendant Coverage
• Inflation protection
• Transferrable upon relocation
• Many payment options to fit all budgets
• Shielded from Medicaid / Title 19

If you choose periodic payments the death benefit during the first six months for death by natural causes may be limited. You may qualify for first day coverage on periodic payments by answering three simple health questions. (**See Disclosure regarding insurance funded prearranged funeral agreements)

Safe, Secure Investment
Forethought Financial Services follows a conservative, but successful, strategy for investing its policyholders' assets. Investments are concentrated in government investment grade securities, mortgage-backed securities and corporate bonds. This approach preserves capital, maximizes yield and ensures both continued growth and long-term solvency. Forethought structures its investments to comply with strict state requirements for insurance companies and to conform to the standards of recognized financial services rating companies such as Standard and Poor's and A.M. Best: A.M Best has awarded Forethought Life Insurance Company an A (excellent) for "strong statutory operating earnings, regular increases to surplus, good credit quality invested assets and position as a leader in its operational niche. The rating also reflects the financial strength and commitment of its parent company, Hillenbrand Industries, Inc. and the strategic role of Forethought (Financial Services) within the organization."
      - Best's Insurance Reports, 1999

Standard & Poor's also rewards the company with an A (good) because it "reflects the company's position in the preneed market, its superior capitalization, its excellent liquidity, and a strategic fit financially with its strong parent."
      - Standard and Poor's Analysis Rating, 1996

Forethought Life at a Glance

• Offers funeral-planning products and services
• A.M. Best Rating: A (Excellent)
• $3.5 billion in insurance in force
• $2.1 billion in assets
• $152 million in total capital and surplus
• Over 1.4 million policyholders

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Trust Plans

Van Dyk- Duven Funeral Home has two distinctive trust plans to meet you r financial needs today…and tomorrow. The two plans are described below, to help support your financial planning decisions.

The Normal Funded Agreement (Non-Guaranteed Contract)
This is a trust holding money specifically designated for use in pre-payment of funeral expenses. Until death, interest is added to the account. All or part of the funeral expenses may be represented in the trust including “cash advance” expenses such as cemetery, honorariums or flowers, etc. This trust may contain all of the money needed for your expenses or it may contain only part of the money necessary with the remainder coming from the family or other private source. You can add money to the trust at any time. Any excess funds available from the Agreement-more than is needed to pay for the funeral- are then returned to your family - unless the individual was on Title 19/Medicaid, then the Iowa Estate Recovery program will collect the remainder. This fund is FDIC insured and interest is reported annually. Any additional funds that may be needed to fulfill the funeral will be asked to be paid in full by your family.

The Specific Price Agreement (Guaranteed Contract)
This is a trust holding money to pay for your contracted funeral services and merchandise as selected. The interest accumulated within the account (interest cannot be distributed to the beneficiary) until death at which time the interest accumulation and the principal is paid in total to the funeral home. Any “cash advance” expenses such as cemetery, honorariums may increase in cost from the time your Specific Price Agreement was written. While your agreement with Van Dyk – Duven Funeral Home guarantees contracted services and the same or similar quality funeral merchandise, the contract will not guarantee those “cash advance” expenses beyond the amount specified in your agreement. Any increase in these costs will be incurred by your surviving family. The total amount of money must be deposited into the account before the agreement is valid. If you choose to arrange payments on time, you will need to choose a Normal Funded Agreement (Non Guaranteed ), or an agreement that is funded by insurance.

Van Dyk- Duven Funeral Home has trust accounts administered by Marion County State Bank, U.S. Bank of Pella, Pella State Bank and Leighton State Bank of Pella.

Your trust investment:

• Is insured by the FDIC
• · Is reviewed and audited by the Iowa Insurance Commission
• · Earns a competitive market based rate of interest pegged to the Prime Rate with a guaranteed minimum rate allowing you investment to keep pace with inflation
• Is deposited in a local bank
• Offers 100% endowment

Van Dyk – Duven Funeral Home offers sensitive, sensible planning, blending our quality skills and services. We provide extended care and service to our friends and neighbors focusing on professional experience with qualified staffs that provide sensitive funeral care with sensible financial planning services.

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Estate Planning

You should consult with an estate planning professional to determine the plan that is right for you based on your state of residence and financial situation. This information is just provided as a guide for your convenience. This covers basic material on:

• Wills
• Trusts
• Medical Directives/Living Wills
• Power of Attorney
• Long-term Care Insurance
• Suggesting reading and links

Estate Planning
Your estate includes all property-home, real estate, tangible personal property such as cars and furniture and intangible personal property such as stocks and bonds, bank accounts, insurance, pensions and Social Security-minus anything you owe. An inventory as well as the location of all assets is critical.
Estate planning serves two primary functions: 1. Managing your property and assets now to protect your wealth, and 2. Specifying distribution of property and assets after death the benefits of estate planning are that it:

• Ensures the financial security of your family,
• Minimizes family turmoil,
• Transfers assets to beneficiaries without delay,
• Plans for incapacity or disability,
• Reduces expenses and taxes,
• Names individuals you trust to administer your estate.

Wills
The best-known and simplest estate-planning tool is the will, which is often the first place people start. This document dictates property distribution when you die. Until then, it has no effect, but may be changed at your discretion. Without written, legal documentation, your property will be disbursed according to state law.

One of the most compelling reasons to draft a will is to provide guardianship for minor-age children and the property they'll inherit. The biggest drawback is all wills are governed by your state's probate court, where final debts are settled and legal title to property passes to heirs. The court oversees the process that may be lengthy, at least six months, involve attorney's fees and is public record. Since local laws may seal safety-deposit boxes upon death, you should ask your attorney to keep a copy of your will.

Trusts
Trusts may be created while you're living (inter vivos) or upon death (testamentary, much like a will) and are either revocable or irrevocable. Living trusts have become popular because they avoid probate court by transferring assets immediately, not at death. If you serve as trustee, you retain legal title and management responsibilities. While living trusts are not subject to probate, they are taxable as income-producing entities. Up-front costs of trusts are higher than wills, however the time-consuming probate process necessitates legal fees not usually associated with trusts.
Trusts offer the following advantages:

• Funds college or other expenses for minor children,
• Holds property for those unable to manage it,
• Requires no third-party approval, such as a probate court,
• May be revoked or changed,
• Avoids any interruption after creator's death,
• Names back-up trustee in event of disability.

Although IRAs, insurance and employee benefits requiring a beneficiary can not be transferred to a trust, the trust may be named a beneficiary. Estate planning can and often does include both a will and trust.

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Medical Directives/Living Wills
An advance-medical directive allows individuals to communicate fundamental choices about the type of care and treatment they prefer for end-of-life medical, ethical and legal situations. Even though you may have a directive or living will, your consent will be necessary if you are able to make decisions. If you cannot, you may name someone to do so. A living will is more narrow than a medical directive and usually addresses only specific, unusual conditions.

Power of Attorney
A power of attorney allows someone else to act on your behalf in a limited or unlimited scope. A durable power of attorney takes effect when an individual is disabled or incapacitated avoiding the need for guardianship.

Long-term Care Insurance
Many couples and individuals planning to protect their estates have opted for a relatively new insurance covering long-term care. Most policies offer a choice of daily benefits in specific dollar amounts; however, the policyholder is accountable for anything additional. Some contain lifetime caps. Most cover nursing-home stays of two to six years and longer or lifetime coverage with no limit. Some benefits are immediate, others after waiting periods of 30, 60 or 90 days. Of course, the better the coverage, the higher the cost. The U.S. Census Bureau reports that 22 percent people age 85 or older live in nursing facilities. AARP estimates an average nursing-care stay is two-and-a-third years, with 55 percent of patients staying one year and 21 percent remaining for five or more years.*
Source: Crash Course in Wills and Trusts, Michael T. Palermo, www.mtpalermo.com/SEC-11.HTM#12 ("Preserving Your Estate with Long Term Insurance")

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Government Benefits

Although certain government benefits may help with funeral expenses, it's not likely to pay for everything. That's why planning and checking ahead is so important. This page contains information on the following government benefits.

Veterans Benefits: Military honors & death benefits
Currently, any eligible veteran departing under conditions other than dishonorable is entitled to these core elements of a military ceremony:

• The playing of Taps by bugler, if available, or recording
• The folding and presentation of the American flag by a least two members of the Armed Forces, with at least one being a member of the branch of service as the veteran being honored

Veterans may also qualify for these military honors and benefits:

• An honor guard
• A firing salute detail
• Burial in a national cemetery which includes the grave site, opening and closing costs and perpetual care. Some national cemeteries also provide for cremated remains. Burial at sea is another benefit; however, family members may not attend because vessels are also on official maneuvers
• A grave marker, normally a flat, bronze marker
• A Presidential Memorial Certificate.
• Burial and funeral-expense allowance

The funeral director will work with the Department of Veterans Affairs at the time of need to confirm eligibility and coordinate these items in conjunction with burial or cremation.

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Eligibility
Generally, those eligible include:

• Veterans discharged or separated from active duty (other than dishonorably) who have completed the required period of service. Armed forces members who die on active duty are automatically eligible.
• Current spouses of eligible veterans or active-duty members. Surviving and remarried spouses may also be eligible.
• Children who are unmarried under 21, those up to age 23 enrolled in an approved educational institution, or unmarried adult children unable to support themselves because of a permanent disability.

Required information
To file for veteran’s burial benefits, you will need to gather:

• Certified DD214 (Enlisted Record of Separation) copy,
• Certified copy of death certificate,
• Amount of life insurance resulting from a veteran's death,
• Paid receipts for hospital and doctor bills incurred by last illness - if applicable,
• Social Security number for veteran, spouse and dependent children.
• VA claim number

Veteran Benefits: Living Benefits
Veterans who would like more information about living benefits can link to the Department of Veterans Affairs home page at www.va.gov or call 1.800. 827.1000 to locate the regional veteran's office in your area.

Social Security/Medicaid Benefits
When prearranging, it's wise to consider any impact on your Social Supplemental Security Income (SSI) or Medicaid eligibility. Usually, both government programs allow a person to exclude prearranged funerals within certain limits. The exclusion can vary by state; therefore, we recommend you contact our funeral home, account, attorney, or other advisor for more details. The following information about the person who died will be helpful to survivors when they do apply for government benefits:

• Social Security number
• Record of earnings for the year preceding death
• Income-tax returns and W-2s
• Date of last Social Security check
• Funeral-expense total
• Birth record of children under age 23
• Marriage certificate
• Social Security numbers of spouse and children
• Military records

If you also qualify for veteran’s benefits, contact the Social Security Administration office before contacting the Veteran's Administration.

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Medicaid
Today, almost 50% of all nursing home residents are clients of the Iowa Department of Human Services or may soon become clients.

FUTURE MEDICAID/TITLE 19 RECIPIENTS AND THEIR FAMILIES SHOULD PRE-FUND FUNERALS ACCORDING TO THIS STATE AGENCY. CORRECTLY FUNDED FUNERALS ASSURE CONSERVATION OF FUNDS SO THAT THEY MAY BE AVAILABLE FOR FUNERAL EXPENSES.

Arrangements correctly made as you apply for Medicaid/Title 19 can let you set aside money for your funeral. This often times alleviates the family from the financial burden to pay for the funeral.

The following are protected resources:

1. Life Insurance when the total face value does not exceed $1,500 per person.
2. Cash or saving accounts equal not more than $2,000 for a client and $3,000 for a client and spouse or dependent living together.
3. Funeral services and merchandise purchased in advance.

After the funeral, if any money is left over from after funeral expenses have been paid, it may be recovered by the Iowa Estate Recovery Program if you received Medicaid/Title 19.

Social Security
Social-Security benefits end at death, although a one-time $255.00 death benefit and/or survivor's benefits may apply to certain family members. If your spouses dies and you survive, you will receive monthly checks based on the amount greater of the two. This is a nice benefit for the surviving spouse. These are not automatic and must be applied for. Our funeral director’s notify the Social Security Administration upon death. When prearranging, it's wise to consider any impact on your Social Supplemental Security Income (SSI) or Medicaid eligibility. Usually, both government programs allow a person to exclude prearranged funerals within certain limits. Because the exclusion can vary by state, you should check with our funeral home.

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