An Introduction to Attorney’s Burial Trust
This video summarizes Resource Preservation Solution’s Attorney’s Burial Trust (30 seconds long)
- RPS Partnership
- Benefits to Your Clients
- Benefits to the Attorney
- Why Use Trust?
- What is covered by the Trust?
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A Message from Mark Costley, Attorney
An overview for attorneys, 3:30 minutes
- Specifically for attorneys
- Enhances client service
- Steps to follow
- Role of attorney
- Benefits to client
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Instructions for Completing the RPS Burial and Funeral Expense Agreement
Once you have completed the planning process with your client, you are ready to complete and execute the trust agreement. With the RPS Burial and Funeral Expense Agreement, completion is as easy as 1 – 2 – 3!
- First, Fill in the Blanks! You can access all of the needed forms on your this page. Then, either print the forms and assist your client with completion by hand, or complete the forms with your client right on your computer. Be sure to complete the Withdrawal Authorization if your client wants the trustee to withdraw funds electronically, and don’t forget the Authorized Expense Directive which must be included with every new trust.
- Second, Sign all the Documents! Be sure that all information has been provided and is complete and then have the Grantor sign each of the documents.
- Third, Send Everything to RPS! First make a copy for your client, then, if your client is paying by check, mail all documents along with the check to RPS, Attn: Karen Golden, PO Box 51807, Durham, NC 27717. If your client is paying electronically, you may transmit via RPS’ encrypted Fax Line at 919-400-4241.
What is the RPS Trust?
This trust was created to allow individuals who are planning for their potential long term care needs to easily set aside assets in an irrevocable trust. There is a master trust that outlines all of the terms of the trust, and there are separate grantor agreements specific to each client that are subsidiary to the master trust agreement.
Who is RPS?
RPS is an acronym for Resource Preservation Solutions, LLC, a North Carolina limited liability company. RPS was created by a group of individuals with years of experience working with funeral planning and long term care planning products both in North Carolina and across the country. RPS sponsors the master trust and will serve as record keeper for the trust.
What are the Benefits to my Clients?
The RPS Trust meets requirements listed in the North Carolina DHHS Medicaid Manual to qualify for exclusion under the provisions for irrevocable burial arrangements. The trust documents can be completed in your office without the need for the client to visit a funeral home or a licensed life insurance agent to set up a similar arrangement.
What is my role with this trust?
As with the other services you provide, your role is to explain the trust as an option for your client as a part of their overall estate and long term care needs planning. If you and your client agree that there is a place for the trust in their plans, you should assist the client in understanding and executing the trust documents and forwarding the executed documents and funds to to RPS for deposit in trust.
Will my Client’s Funds be Secure?
Absolutely! Fiduciary oversight of this trust is provided by Old North State Trust, LLC. Old North State is also a North Carolina company and has years of experience as a trustee. Since the purpose of the trust is to provide funds to pay for the grantor’s funeral and burial expenses, in most cases a single premium life insurance policy will be purchased on the life of the grantor. In rare cases, the Trustee may instead invest funds in a manner consistent with applicable prudent investor rules.
If life insurance is being purchased do I need an insurance license?
No, you are helping your client set up an irrevocable trust and you are not involved in the purchase of life insurance.
Since these are grantor trusts how are taxes on trust income handled?
The trust will be purchasing a life insurance policy. The internal increase of value within a life insurance policy is not subject to federal income tax so no tax returns will be required.
Does the trust qualify as an excluded asset under the burial and funeral expense exclusion?
This program was designed to be compliant with the regulations and policies detailed in the North Carolina DHSS Adult Medicaid Manual specific to the section that addresses irrevocable burial arrangements (MA-2230 XIII.B). Since these rules are often subject to interpretation by individual case workers, you should review the documents according to your interpretation of the rules. Even though the Agreement includes the Authorized Expense Directive listing out burial and funeral items and services that are to be paid for, a DHHS case worker may request a more specific listing. While this is not likely, if you do encounter this with a case worker, RPS can help your client secure a more specific listing of funeral services and items.
When does the Agreement become irrevocable?
The Agreement becomes irrevocable once signed by the Grantor and on the date accepted by the Trustee. Once the Agreement becomes irrevocable it cannot be unwound. DHHS requires that the Agreement be irrevocable in order for it to qualify under the Burial and Funeral Expense exemption.
What do I do if the Grantor does not have the capacity to sign?
If the grantor is not competent to sign the Agreement, it can be signed by the grantor’s guardian or power of attorney as long as the POA document grants this authority. In these cases, copies of guardianship or power or attorney documents should be sent along with the executed trust documents.
What is the dollar value that may be transferred to the trust?
The trust will accept transfers of a minimum of $2,500 up to a maximum of $15,000.
Will the trust accept assets other than cash?
No, only cash may be transferred to this trust.
Are there any age limitations for clients wanting to use the trust?
No, clients of all ages can utilize this trust.
Who can I contact if I have additional questions about the trust?
Please direct your questions to RPS via phone at 919-451-9223 or via email to email@example.com.
Does RPS offer any other products that may be appropriate for my client’s long term care planning needs?
Yes, In North Carolina an individual seeking to qualify for Medicaid assistance may have life insurance up to a cumulative face value of $10,000. Policies are available through our affiliate company, Future Planning Services to fill that need. Future Planning Services also can provide a Medicaid compliant single premium immediate annuity and has a life insurance program that is available for clients looking for a way to transfer assets to their decedents. Please call or email RPS for more information about these programs.
IN ASSOCIATION WITH:
Old North State Trust, LLC is an organization providing Trust and Estate Services, Income, Estate and Trust Tax Consulting, and Asset Management with a distinction in objectivity, expertise and flexibility to fee-based services with an intense focus on quality customer service. Trustworthiness is the cornerstone around which we have built our company, in addition to honesty, integrity, and fairness.
Established in 1910, National Guardian Life Insurance Company (NGL) is one of America’s most successful, independent mutual life insurance companies. As a mutual company, NGL is controlled by its policyholders and operate in their best long-term interests. While adhering to the highest standards of quality and integrity, NGL strives to demonstrate its commitment to its policyholders and their families.