pre-arrangements
Pre-arranged funerals can be as simple as documenting your wishes, or as thorough as planning your entire funeral or memorial service. We can help guide you through the process.
Pre-arranged funerals may be prepaid. Those funds – called “pre-need funds” – are deposited in the financial institution of your choice as a certificate of deposit (CD) or with Homesteaders Life Company, which is an insurance company that exclusively handles pre-need funeral funds.
Pre-need accounts are reported annually to the State of Iowa Insurance Commissioner by the financial institution and the funeral home to make sure the funds are safe and secure.
Pre-need funds are in irrevocable accounts, which means neither the funeral home, the state nor the individual can touch the funds until the death of the individual. The funeral home can cash the certificate without an interest penalty only after a certified death certificate has been presented for proof of death.
If the decedent is on government assistance – such as Title 19 – at the time of his/her death, the funds in the funeral trust must be spent on the funeral services or refunded back to the state. If the decedent is not on Title 19 at the time of death and all of the pre-need funds are not spent on the funeral expenses, the balance of the funeral trust is refunded to the decedent’s estate.