Trust Programs
A Pre-arranged Funeral Funding Program - PNC Bank, Trustee
Owned and operational oversight by participating Pennsylvania funeral directors. This program was formerly called the Pennsylvania Funeral Trust.
SecurChoice™ Trust Benefits
1. SecurChoice™ Trust Documents are:
In compliance with all federal & state laws
Easy to use
Free
2. SecurChoice™ Trust Administration:
Supply all participating funeral homes with forms and materials needed for use of the pre-need program.
Process all pre-need trust contracts and retention/storage of all documents.
Payment of death claims to funeral homes.
Provide outstanding customer service 5 days a week, from 8:30 am to 4:30 pm.
Participating funeral homes have access to current death benefits for the trust
(mutual funds and/or money markets) by calling during business hours.Funeral Homes that have invested in the annuity, can access estimated
death benefits by going online to FDLIC.
3. SecurChoice™ Trust Reporting:
Quarterly Reports: They are sent out quarterly and reflect the history and performance of each trust account. Accuracy at its highest standard.
File all federal and state tax returns required for accounts established as Qualified Funeral Trusts. If funeral home does not want to pay the tax on the earnings of a trust account, a Grantor Trust can be established and tax reporting forms are sent to the owner of the trust.
4. SecurChoice™ Trust Contract Options and Investment Options:
Trust contract options include: Guaranteed or non-guaranteed services and merchandise, guaranteed or non-guaranteed cash advances, and revocable or irrevocable.
Investment Options: Currently offer a money market fund, 5 mutual funds, 3 bond funds and an annuity (see annuity details below).
Other Investment Option: A funeral home may have approved professional money manager handle the funeral home’s pre-need funds. Or a funeral home may have a professional money manager they currently have a relationship with and want them to manage their funds. This can be done with PNC Bank’s approval.
5. SecurChoice™ Trust Correspondence:
An acknowledgement letter is sent to each new pre-need client from PNC Bank indicating that their pre-arranged funeral account was established with your funeral home and their funds are being held by PNC Bank. PNC Bank is known throughout the state of Pennsylvania.
All correspondence from this point forward is between the SecurChoice™ Trust administration and funeral home personnel. Funeral homes are the one to correspond with their client families.
“No Outrageous Promises, 33+ years of solid results”
Trust Annuity Option, a Net 3.4% Compounded Interest
The SecurChoice Trust Annuity is a flexible premium deferred annuity issued by Funeral Directors Life Insurance Company (FDLIC), rated A- by the A. M. Best Company. The Trust Annuity interest rate is established each year by the FDLIC Board of Directors. The current interest rate of 3.4% is effective of October 1, 2023. No fees are deducted from the earnings. If the trust account is established as a Qualified Funeral Trust, taxes will be deducted and paid from the annuity earnings at the time of death. If the funeral director put the funds in a Grantor Trust, a Grantor Tax Information Letter will be sent to the estate of the deceased. The maximum deposit amount that will be accepted by FDLIC to pay for a funeral is $25,000. Deposits as small as $50 are accepted for those clients wanting to make payments. Funeral directors do not need an insurance license to use this annuity product. PNC Bank, Trustee, purchases each annuity contract and becomes the beneficiary and owner. There is a penalty if an annuity is canceled for any reason other than death.
Contact Deb Miller deb@pfda.org via email or by calling
800-692-6068 (option 2) for more information.