Why do I have to pay taxes on the interest earned on my prefinanced funeral trust?
While this is not always the case (as there are some “tax free” trusts available–and in some cases the taxes are paid by the trust administrator), generally speaking you, the consumer, will be responsible for paying taxes on the earned interest. Again, this is something to ask prior to signing a contract. Generally speaking, the money in the trust belongs to you–which is why it is your responsibility to pay tax on interest earned.
