Irrevocable Funeral Trusts

Security for your future

Protecting your assets at any age is important, but never more than when you are confined to a nursing home or need to apply for Medical Assistance (Medicaid). By transferring ownership of your policy to the NGL Funeral Expense Trust, as of the effective date of transfer, you may be able to exclude your policy as an asset for Medicaid eligibility purposes. In addition, you can be assured that the funds in the policy will be used to first pay your funeral expenses, with any excess returned to your estate.

By irrevocably assigning your policy and permanently transferring all ownership rights to the NGL Funeral Expense Trust, you’ll receive the following benefits:

  • The ability to exclude your policy as an asset in order to qualify for Medicaid and Supplemental Security Income (SSI).
  • Policy proceeds are paid to the Trust, which then pays funeral costs. Any excess will be paid to the estate of the Insured.
  • Funds used for funeral expenses are protected from creditors, such as nursing homes, hospitals, lawyers, etc.
  • Death proceeds used for funeral expenses will avoid probate costs and delays.
  • Income tax free benefits*

Individual state regulations may vary. We recommend that you consult a Legal Advisor for complete details on irrevocable assignments, Medicaid eligibility and using a trust to protect your assets, including a life insurance policy.

Settlers Life and the SETTLERS LIFE NGL Estate Planning Trust

Security for Your Future

Protecting your assets at any age is important. One way to help protect your assets is to irrevocably assign your Settlers Life policy into the NGL Estate Planning Trust and name the Trust as your primary beneficiary. This trust provides an opportunity for you to protect your policy proceeds from creditors, ensuring that they will first be used to pay the funeral expenses of the insured named on your policy.

Q. What’s required to take advantage of the Trust?

Answer: An irrevocable assignment of your Settlers Life policy to the NGL Estate Planning Trust, the designation of the Trust as the beneficiary of the policy (so it receives the funds to pay your funeral expenses), and the designation of a Trust Beneficiary (someone to receive the funds in excess of what are needed for funeral expenses). By irrevocably assigning your Settlers Life policy and permanently transferring all ownership rights to the NGL Estate Planning Trust, plus naming the Trust as primary beneficiary, you will receive the following benefits:

  • Policy proceeds are paid to the Trust, which then pays the Insured’s funeral costs. Any excess funds will be returned to a Trust Beneficiary you choose or to the estate of the insured.
  • Funds used for funeral expenses are protected from creditors, such as nursing homes, hospitals, lawyers, etc.
  • Death proceeds used for funeral expenses will avoid probate costs and delays.
  • Income tax-free benefits (See IRe Section 101a).

Individual state regulations may vary and sometimes change. We recommend that you consult a Legal Advisor for complete details on irrevocable assignments, Medicaid eligibility and on using a trust to protect your assets, Including a life insurance policy.

Click here to download an Irrevocable Assignment of Ownership form.

Click here to download a brochure explaining Settlers Life Insurance Company’s Final Expense Program.

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