Trust funds are not included as part of the resident’s assets for purposes of establishing eligibility for government benefits.  Contracts are the foundation of Arlington’s burial trust.  The contracts include everything required for a traditional funeral or cremation and the prices delineated are guaranteed when the trust is fully funded within three years of establishment. 

Because Arlington works with a network of funeral homes and directors, we can offer lower and more competitive prices.  We also allow flexibility to agencies if family involvement necessitates using a different funeral home.   

Many agencies use other options to cover burial expenses such as insurance policies, irrevocable savings accounts, and contracts with individual funeral homes; all of which have distinct disadvantages.   

Burial Savings Accounts

Burial savings accounts count as assets if they are not irrevocable.  If the burial savings account is irrevocable, the cap is $1,500 for a person receiving Supplemental Security Income. The rate of return on these accounts is generally less than the inflation rate in the funeral industry.  Furthermore, the funds in a burial savings accounts tend to be grossly inadequate to cover funeral costs at the time of need. According to the National Funeral Directors Association, the average cost of a funeral was $8,500 (including cemetery plot and opening/closing) in 2004 and can be much higher in certain areas of the country.  Our cost for a traditional burial is significantly less than the average. Finally, burial savings accounts that have been dormant for over three years are at risk to be taken by the state.

Insurance Policies

We believe life insurance policies are flawed because clients often pay more in premiums than the costs for our burial trust. Also, the cash value of the policy may be counted as an asset unless the beneficiary is irrevocable. Some policies do not pay interest to offset inflation. If a payment is missed on an insurance policy, the policy may be terminated.

Individual Contracts With Funeral Homes

Contracts with individual funeral homes can be problematic for several reasons:  prices tend to be high, changes often cannot be made to the contracts without incurring additional cost, and the contract is usually not transferable to another funeral home in case a client is transferred or moves to another agency. In addition, funeral homes may not be in business at the time of need, cemetery costs are not included in these contracts, and full payment of the contracts generally must be made upon signing (or on a monthly basis with interest).