When working with a Phoenix funeral home, and especially if you’re planning a funeral in advance, you’ll likely encounter Arizona law – Title 19. This law affects how your money can be used towards your and your loved ones’ end-of-life arrangements. However, this should not deter you from planning in advance, as you can avoid inflation costs later by doing so. Often, when pre-planning a funeral, a trust is established. You usually supply the trust with cash, bonds, or life insurance. A revocable funeral trust can be changed and revoked by you. An irrevocable trust can’t be changed or canceled. Your money can only be allocated for funeral services.
With prepaid funerals in Arizona, funeral trusts are mainly used when applying for Title 19 (AHCCCS/Medicaid) during the asset spend down period. Neither the state, you nor your family is not allowed to touch the money. It stays in the trust or insurance policy for the purpose as stated in the written contract with the Phoenix funeral home. Funeral home guarantees apply if the funeral chosen is paid-in-full, and falls within the limits that the state has established. Revocable funeral trusts are intended to transfer funds to one or more named beneficiaries upon the death of the owner. Pre-paid funerals may be challenged (considered an asset) in Arizona if applying for Title 19.
There are also additional rules that apply if the funeral trust account owner gets aid from the state. Insurance is another payment option for pre-arrangements, but not every Phoenix funeral home offers it.
MVFH is a Phoenix funeral home, in which our licensing and education allows us to offer certain types of special insurance policies that are created to keep pace with inflation. These policies have a 30-day free trial and are tax-free, transferable, and can be arranged to protect from the Title 19 spend down.
The staff at Mountain View Funeral Home and Cemetery realizes this information may be confusing to you. It’s understandable, as this may be the first time you have ever heard of Title 19. As a Phoenix funeral home, we are here to answer any question you have about it, as well as make your funeral plans as stress-free as possible. Contact us at 480-832-2850.