Funerals | Cemetery | Cremation | Embalming | Grief | PreArrangement | Search
Why should I prearrange my funeral or burial?
When you plan ahead, you will be able to consider the many options available.
You will have the opportunity to make an informed decision about your funeral
and cemetery arrangements, and the form of memorial you prefer. You will be able
to make choices that are meaningful to both you and your family, and you will
gain peace of mind knowing your family and friends will be relieved of the
emotional and financial burden often associated with making arrangements when a
death occurs. In addition, by prefunding your funeral and cemetery services, a
guaranteed price contract will allow you to purchase at today's prices, free
from inflationary pressures in the future. (Check to determine whether prices
are guaranteed). Your local funeral or cemetery provider can help you pre-plan.
Go
To Top
If I pre-plan and prepay my funeral or burial, how do I know that the money will be there when I die?
It's important to remember that prearrangement is a two part transaction. The
first is the funeral agreement between you and the funeral home and/or cemetery.
That agreement is comprised mostly (sometimes completely depending upon your
state laws) of elements that are guaranteed to be performed at no additional
costs to your family once the funding is complete. The second is the actual
funding of the agreement. Ironically, it's the prearrangement provider who is
the most concerned with the question of the funds being available at death.
That's why they carefully consider the financial soundness of where funds set
aside for funeral and cemetery prearrangement agreements will be placed.Go
To Top
If I prepay my funeral, what happens to the interest that my money earns?
If you have a prearranged funeral or burial agreement that is comprised of
items that are guaranteed to be performed by the funeral home or cemetery at no
additional cost to you, the interest (or growth if a life insurance policy) is
retained by the funeral home/cemetery to offset the rising costs of those
specified goods and services over time. That's the value of prearranging and
prefunding at today's costs!.Go
To Top
Can I change any of these prepaid funeral services later?
Changes are generally possible, but be careful. When changes are made, they
oftentimes affect the terms of guarantees that were created under the original
agreement. In the event funds paid toward a funeral plan are excludable
resources for purposes of receiving social services (SSI or Medicaid), changing
the terms of that agreement could jeopardize one's qualification for assistance.
It is not recommended that irrevocably assigned funeral plans be changed in any
way.Go
To Top
What if your funeral home or cemetery changes ownership?
Prior contractual agreements are not voided simply because a change of
ownership occurs. The funeral planning agreement you have with the prior
ownership is carried forward with successor owners as part of the purchase
agreement..Go
To Top
Is there a pre-payment penalty for paying off these arrangements in advance?
It's not uncommon to have a small processing fee associated with an early
payment, but it should not be construed as a "penalty." In the long
run, there is usually a good amount of money to be saved by paying off early. Of
course, funding agreements vary. Please be sure to check the terms of your (or
your proposed) funding agreement for details..Go
To Top
Can social services take my pre-arrangements away from me?
Take away? No. Challenge the amount being set aside to pay for an expensive
funeral? Yes. Funds set aside to pay for a reasonable funeral arrangement are
not counted as assets as one qualifies for social services. Your local funeral
director can provide counsel regarding the amount local social services agencies
consider reasonable and customary to spend on a funeral..Go
To Top
© 2000 FuneralAssistant.com
Print
page