Irrevocable vs. Revocable

There are two kinds of prepaid agreements: Revocable and Irrevocable.

Revocable Agreements  

Trust moneys in revocable accounts are 100 percent revocable upon demand, including all principal and interest. With a revocable agreement, you may change the funeral home and the selected funeral services or merchandise at any time without penalty.

The New Jersey Prepaid Funeral Trust™ utilizes a standard Revocable Trust Agreement for all prearrangements.

View a sample agreement.

Irrevocable Agreements

In New Jersey, irrevocable agreements are required when creating a prepaid funeral account for SSI/Medicaid applicants and recipients. Irrevocable means that the trust fund moneys are NOT REFUNDABLE. Only individuals prepaying their funerals in order to qualify for SSI, Medicaid, or General Assistance may establish irrevocable arrangements, which must be used for funeral and burial purposes. Irrevocable prepaid funeral agreements cannot, by law, be cancelled or refunded (although consumers may change funeral homes).

The New Jersey Prepaid Funeral Trust™ utilizes a standard Irrevocable Trust Agreement for all SSI/Medicaid and General Assistance prearrangements.

View a sample agreement.

Irrevocable Agreements and Asset Recovery

New Jersey has an Asset Recovery law in place. The legislation says that, once all funeral expenses have been paid, any moneys remaining in irrevocable trust accounts opened on or after February 27, 2000 or in newly issued insurance policies purchased on or after February 27, 2000 will be forwarded directly to the State of New Jersey. The law was put in place to help reimburse New Jersey a small portion of the money it spends each year on the SSI/Medicaid program.  

For more information, see the "SSI/Medicaid and Preplanning" section of this Website.