Funeral
Planning
Please
Note: Preneed laws vary from State to
State
Contact
your local Cemetery or Funeral Home for more
information regarding preneed arrangements
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| Deciding
in Advance |
| For
a Loved
one........
While
making such
decisions is
difficult at any
time, planning
in advance for
the death of a
loved one can
relieve you of
that
responsibility
at the time of
death, when you
may be
emotionally
vulnerable. Take
time now to
discuss these
matters and find
out what your
loved one wants.
|
| For
yourself……..
Planning
in advance for
your own
death can spare
your loved ones
the anguish of
making difficult
decisions while
in a state of
grief. Be sure
to discuss your
wishes with your
family. You may
also wish to
consult an
attorney on the
best way to
ensure that your
wishes are
followed.
You can make
arrangements
directly with a
funeral
establishment or
through a
memorial
society.
Memorial
societies
provide
information
about funerals
and disposition
but do not offer
funeral services
themselves and
are not
regulated by
most states. To
locate a funeral
establishment or
memorial
society, ask
friends and
relatives for
referrals, and
check the
internet for
sites such as
FuneralAssistant.com.
(Note: Many
funeral entities
that include the
word
"society"
in their names
are for-profit
businesses. If a
society’s
nonprofit status
is important to
you, you should
confirm it prior
to making
arrangements.) |
| Compare
Prices and
Services
First,
visit and
inspect several
funeral
establishments
and compare
services
offered,
restrictions,
rules, and
prices. Then,
decide how much
you want to
spend. If you
buy a casket at
a retail outlet,
be sure to ask
if the outlet
will deliver it
or if you must
pick it up. Also
compare prices
at several
cemeteries and
ask about their
endowment care
funds. If
a funeral
establishment is
not being
maintained to
your
satisfaction,
take your
business
elsewhere. |
Prearrangement
You
may wish to
decide about
your
arrangements in
advance but not
prepay for them.
Keep in mind
that over time
prices may go up
and businesses
may close or
change
ownership. It’s
a good idea to
review and
revise your
decisions every
few years, and
you should make
sure your family
is aware of your
wishes. Put them
in writing, give
copies to your
family members
and your
attorney, and
keep a copy in a
handy place. (Do
NOT keep your
only copy in a
safe-deposit
box. Your family
may have to make
arrangements
before the box
can be opened
– for example,
on a weekend or
a holiday.) |
| Prepayment
Options
If
you do
decide to prepay
for funeral and
/ or cemetery
services, you
have several
options. (NOTE:
These are
options, NOT
recommendations.
Be sure to
carefully
compare the
advantages and
disadvantages of
each – and
consider
consulting an
attorney –
before making
any decisions.)
Preneed Trust
Contracts
– Decide on
the funeral and
cemetery
services you
want, sign
contracts that
fully describe
those services,
and pay a set
amount into a
trust
administered by
the funeral
establishment or
cemetery. There
will usually be
some costs that cannot
be prepaid.
Services such as
opening and
closing the
grave are not
usually part of
the preneed
contract and
must be paid at
the time of
need. (NOTE: Be
sure that your
contract
includes a
cancellation
clause, in case
you change your
mind later. Most
cancellation
clauses require
you to pay a
penalty, usually
10% of the total
cost) |
Suggestions:
|
 |
Ask for
a guaranteed price plan.
This protects you and your
family from future price
increases. With a non-guaranteed
price plan, your survivors may
have to make up the difference
in cost. However, even with a
guaranteed price plan, some
items or services will probably
have to be paid at the time of
need. |
|
Make
sure the funds in your preneed
trust increase in value, and
find out where the money is
being invested and who the
trustees are. You may receive an
annual statement of earnings,
which may be required to be
reported as interest income on
tax forms. Also, be sure that
the plan includes provisions for
your survivors to receive any
funds that remain after the
arrangements have been carried
out. |
|
Find
out if you have to pay the
entire amount into the trust up
front, or if you can pay over
time. Ask if there is a penalty
for late payments. |
|
Ask if
your funeral arrangements can be
transferred to another funeral
establishment, or if the
cemetery will buy the property
back if you move out of the
area. |
|
To
guarantee prices of cemetery
goods, such as a vault or a
marker, buy them and have the
cemetery store them until they
are needed. This is called
"constructive
delivery." There is no
provision in law for
constructive delivery of funeral
goods. |
|
Savings
– Earmark a portion of your
savings for your funeral
expenses, and ensure that your
family members and attorney are
informed and that provisions are
made for your survivors to
withdraw the funds at your
death. You can change your mind
at any time. |
|
POD
Account – Establish a Pay
On Death or POD Account with
your bank, designating the
funeral establishment as the
beneficiary of the funds upon
your death. Be sure to inform
family members, the funeral
establishment, your chosen
executor, and your attorney of
the provisions of the account.
POD accounts may involve service
fees, and interest earned is
taxable. They may be canceled
without penalty. (NOTE: The
funeral establishment is not
required to pay any excess funds
to your survivors.) |
|
Life
Insurance – Buy life
insurance equal to the value of
the funeral and arrange for your
beneficiary (a family member or
friend) to handle the
arrangements in accordance with
your stated wishes. (NOTE: If
the costs exceed the amount of
your policy, your survivors will
have to make up the difference.) |
|
Funeral
Insurance – Buy funeral
insurance through the funeral
establishment, which becomes
your beneficiary. You pre-select
the casket, plot, etc., and the
price may be guaranteed. If the
price is guaranteed, the funeral
establishment cannot charge your
relatives more than the contract
states, even if prices rise. However,
it can keep any funds remaining
after the arrangements have been
carried out. |
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