Pre-Payment Options


Planning Ahead with Funeral Pre-Funding

Most people are unaware that there is more than one way to prepay for your funeral arrangements. Helping choose which way is best for you is what our staff is trained to help you with.

There are two primary options for pre-funding a funeral, these options include:

Bank Trusting - Trusting a prepaid funeral plan with a local bank. Your money is placed into an interest bearing account at a bank of your choosing. Just like any bank investment, a tax form 1099 is generated by the bank, and the interest must be reported on income tax statements.

Insurance Funded Plan – The Picha Funeral Home offers Pathway by Pekin Insurance as a way of pre-funding a funeral by an insurance policy. This plan offers different payment options, typically chosen is the single premium payment plan, but multiple year payment plans over three, five or ten years may be available. These policies also include interest growth, but are not reportable on income tax statements.

If you would like more information on the Pathway by Pekin product, please visit their web site
Assignment of an existing insurance policy is sometimes a third option to consider for prefunding funeral plans.

We will sit down with you to discuss which option suits you best.

Medical Assistance/Medicaid Recipients
A very important benefit to pre-funding is that an irrevocable pre-funded funeral trust is not considered an asset when applying for medical assistance. The money is safe and can only be used for final expenses at the time of death. Wisconsin law mandates that pre-need burial trusts for applications or recipients of SSI/Medicaid must be Irrevocable. This means that the contract may not be cancelled prior to death. It may, however, be transferred to another funeral home at any time.

How Pre-planning and Pre-funding works

Once a funeral home has been selected, a pre-planning conference is scheduled to review wishes to help ensure the services and merchandise make the funeral as meaningful as possible.

The funeral home will prepare an itemized statement of services and expenses in the form of a pre-need contract to be signed by both parties.

Payment is made to the pre-need investment product of choice and a copy of all signed documents is provided to the purchaser as a receipt of services.

The funeral home forwards the funds to the chosen investment and within 15 business days the purchaser will receive a deposit acknowledgement indicating the name of the investment program where the funds are being held.

Funds are paid directly to the funeral home once the funeral services have been provided.
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