Funeral Trust Account

Once known as a Pre-Paid Funeral, the modern Funeral Trust Account allows you to securely invest funds to pay for some or all of the funeral

Funeral Trust Account

Once known as a Pre-Paid funeral, the modern Funeral Trust Account allows you to securely invest funds to offset some or all of the funeral account. This helps remove the financial burden your family may face at the time of death. It is a good idea to tell your family that your wishes are known by us, and that those wishes will be carried out professionally and with dignity.

Why Pre-Pay A Funeral?

In today’s economic climate, many of us have enough to worry about without our financial burdens being a concern after we have passed away. It can be a major concern to many people, who will be paying their funeral account when they pass away. That is why we have devised a funeral pre-payment plan to suit all wishes and budgets.

Account Details

ANZ Trust Account: We set up an account under your name in a ANZ Trust Account. The account can only be drawn on when we produce a copy of the death certificate. This means that we cannot withdraw any of that deposit until after death. Your money is in your name and is not considered a company asset, and we don’t charge any administration fees.

The Benefits of Abraham’s Funeral Trust Account Tax that may accumulate from that account is automatically paid by the Bank All interest earned is compounding and remains yours The first $10,000 held in the account is excluded from asset testing You can deposit as little or as much as you like There are NO fees we don’t charge any administration fees

How it works

When you choose to establish a Funeral Trust Account with W. Abraham Ltd, your funds are placed in a secure, dedicated trust account with the ANZ Bank. This account is set up in your name and serves as an investment specifically designated to cover the future costs of your funeral expenses.

Key Points to Understand:

Not a Pre-Purchase: It’s important to note that you are not pre-purchasing funeral services. Instead, the funds you invest are held in trust, accruing interest over time, and are only accessible upon your passing.
Fund Withdrawal: The funds can only be withdrawn by W. Abraham Ltd once a copy of your death certificate has been provided, and an itemized account of your funeral expenses has been prepared.
Interest Earnings: The interest earned on your trust account is compounded, increasing the balance over time. You will receive an annual statement detailing the current balance and the interest accrued.
Balance and Refunds: After your funeral expenses have been settled, any remaining funds in the trust account will be refunded to your estate. If the funds in the trust account are insufficient to cover the total costs, the remaining balance will be paid by your estate or the persons responsible for your funeral expenses.
Security Measures:
- All funds are held securely at the ANZ Bank, and withdrawals require the authority of two signatories from W. Abraham Ltd.
- Your funds remain protected as they are not considered an asset of W. Abraham Ltd. This ensures that in the unlikely event of insolvency, your investment remains safe.
- W. Abraham Ltd does not take any commission from the funds held in your trust account, nor can these funds be used for any purpose other than covering your funeral expenses.
Withdrawal Restrictions: Once you have invested in the Funeral Trust Account, the funds cannot be withdrawn for any reason except under specific circumstances:
- Transfer of Funds: If you move out of town, you may transfer the funds to another company’s funeral trust account.
- Financial Hardship: If you experience financial hardship, you may request a withdrawal of the funds under this condition.
These withdrawal restrictions are necessary to ensure compliance with an exemption from the asset testing for the residential care subsidy provided by Work and Income New Zealand. This exemption allows the funds in your Funeral Trust Account to be excluded from your assets when applying for this subsidy.
Privacy and Compliance: We comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, ensuring that your personal details are handled securely.

This structure is designed to offer you peace of mind, knowing that your funeral expenses are pre-funded and managed with the utmost care and security, while also maintaining flexibility in case your circumstances change and ensuring compliance with important financial protections.

Think About What You Want

Some people choose to pre-arrange their funeral at the same time as they open a Trust Account, while others are content just in the knowledge that the financial side is taken care of.

If pre-arranging as well, the first thing you need to do is think about what you want your funeral service to involve. For example, where the service may be held, who will officiate at the service, what music you may like played etc.

You can then talk to us, to obtain detailed information about what options you have. From there, we can advise and assist you in your decision making, either as individuals or as a family.

Pre-Arranging

Opening a Funeral Trust Account

To open an account or to talk more about our Trust Account, simply fill in the form below or call our office on (06) 757 5210 to make an appointment for a time that suits you, either at our premises or in the comfort of your own home.

Documents we require to open an account (they need to be the account holders information)

IRD Number
Photo ID
Proof of address e.g. utility bill, bank statement

Learn more about…

Funeral Costs Our Facilities Our Services Pre-Planning Personalised Services Funeral Options What Happens When Someone Passes? Why Have A Farewell? Pre-Paying

Funeral Trust Account