A Trustees Executors Funeral Trust will provide peace of mind for you and your family

What is a Funeral Trust?

A Funeral Trust is designed to cover, or contribute toward the cost of your funeral expenses. Money that is deposited into a Funeral Trust by you cannot be withdrawn until after you pass away, so you can be assured that the money you have put aside will only be used to contribute toward payment of your funeral expenses.
 

Why should you have a Funeral Trust?

Ease the financial burden on your family 
Your funeral and the bereavement that goes with it will affect your loved ones both emotionally and financially. Many decisions need to be made quickly and often under a high level of stress - even more difficult is the added financial impact of having to pay for funeral arrangements, often at short notice. Funeral expenses can range from around $5,000 to over $15,000 depending on the nature of the funeral you choose to have and are often a family's third largest expense after paying for a house or car.

By establishing a Trustees Executors Funeral Trust you will save your family and loved ones some of the cost of paying for your funeral as the bringing in and realisation of assets forming your estate takes time and may not happen quickly enough to enable payment of funeral expenses until after they fall due.

Payment of Funeral Expenses
On your death, the funds in your Funeral Trust are available to be paid out promptly, to either the funeral director or to the person who produces evidence that your funeral expenses have been paid by them. Any balance remaining that is not required to meet your funeral expenses will be forwarded to the person administering your estate for distribution in accordance with your will.

Asset Testing Exemption
Asset testing for long stay public and private hospital care and rest home subsidies still applies. However, a funeral trust is a form of "prepaid funeral expenses" for which an exemption of up to $10,000 exists - meaning you can still qualify for a residential care subsidy.
 

How are your Funeral Trust Funds Invested?

Because a Funeral Trust may exist for a number of years before payout it is important that funds grow to cover any increases over time in funeral expenses. The Trustee of the Trustees Executors Funeral Trust has the power to invest in accordance with the deed governing these Funeral Trusts. The Trust funds are invested with a view to providing safety, stability and a consistent level of return and the Trustee is entitled to invest either directly or through a pooled investment.

Income earned on your Funeral Trust is taxed as Trustee's income, therefore you do not have to declare any earnings on your personal tax return. 
 

What will it cost to establish your Funeral Trust? 

• The minimum initial contribution to establish your Funeral Trust is $2,000.
• An establishment fee of $150 is applied. 
• There is no maximum amount that you can hold in your Funeral Trust, although asset testing may apply to amounts over $10,000. 
• You can continue to contribute to your Funeral Trust with minimum deposits of $1,000, or you can choose to set up a direct debit for making smaller contributions more regularly. 
   

How do you set up your Funeral Trust?

Anyone can set up a Trustees Executors Funeral Trust.
Simply call us for further information and an application form on 0800 Trustees (0800 878 783) or alternatively, you can download a Funeral Trust brochure and application form.

Once you have completed your application form please send to:

FreePost Trustees Executors Limited
PO Box 760
Dunedin 9054

* The new Trustees Executors Funeral Trust was established by deed of trust, dated 14 May 2009.