Recent changes in U.S. federal income tax laws require the Benevolent Trust Fund to file a form 1099 with the Internal Revenue Service when a death benefit is paid to a beneficiary. The form 1099 alerts the IRS that a distribution has been made in case your beneficiary is liable for income tax on the benefit payment.

However, according to legal advisors, "death payments made to a funeral home or similar corporation are not treated as taxable income to your beneficiary. Therefore, if you intend for your BTF death benefit distribution to be used for funeral and related expenses, naming the funeral home as your designated beneficiary could save your dependents or other beneficiaries from having to pay income tax on your death benefit."

However, you should discuss this arrangement with the funeral home or other corporation to ensure that the death benefit payment can be used for the purpose you intend and with a qualified tax advisor before making any change to your beneficiary designations.