Pre-need Funeral Trust Law and Legal Definition

Pre-need funeral trust is created when an individual purchases burial services during one's life. Such a trust is created so that the decedent's family does not have the burden of the decedent's funeral decisions. Pursuant to 26 USCS § 671, purchasers of pre-need funeral services, rather than sellers, are grantors and owners of pre-need funeral trusts established under state laws.