Irrevocable Burial Trust

Back in the 1980’s my grandma spent the last few years of her life in a nursing home. It wasn’t an ideal situation, but she had several medical issues that made it difficult for her children to provide for her care themselves. Grandma’s limited assets were soon gone and then she qualified for Medicaid. The state paid for her nursing home stay and after a few years, she passed away.

I remember vividly at her grave side service, watching my uncle walking up to the people paying their respects with a hat turned upside down in his hands. He was “passing the hat” to help pay for Grandma’s funeral. Enough money was collected to pay for the funeral, but I know my grandma would have been upset with the situation. Nobody had planned for the day we all knew was coming.
I shared this story with you because there is a better way to make sure that your final expenses are taken care of, without putting a financial burden on your family.

Let’s talk about the GCU Irrevocable Burial Trust.
The GCU Irrevocable Burial Trust (IBT) is the best way to make sure your final expenses are taken care of, no matter what may happen to your financial situation during your final years. Here are some reasons that people choose to Use GCU whole life insurance policies together with the Irrevocable Burial Trust.
1. Assets in an IBT are not considered “countable” assets by Medicaid.
2. You can pre-pay for a funeral and associated costs without choosing a specific funeral home or even visiting one.
3. The IBT, funded with whole life insurance, has immediate tax-free growth and the death benefits avoid the probate process.
4. An IBT cannot be surrendered, dissolved or reversed by anyone, even the State, ensuring that your wishes are carried out.

Of course, there are rules and regulations that must be followed, and each state has slightly different rules. Most states will allow up to $15,000.00 to be placed in a burial trust while others allow less.
Here is an example on how using the GCU Single Premium Whole Life insurance would work using an IBT.

Betty, age 70, wants to make sure that she provides the funds needed for her final expenses. She applies for a GCU Sigle Premium Whole Life insurance policy and pays a one time premium of $9,189.00. Her death benefit is $15,000.00 and the policy is designated as an Irrevocable Burial Trust. Going forward, even if Betty goes to a nursing home and ends up on Medicaid, her IBT is a protected asset so she knows that her funeral expense will be paid for, and her family will not have to “pass the hat.”

Now that is the right way to plan. Give GCU a call if you have questions or want more information.

Jeff Long | Sales Director