Funeral Pre-Planning

WHY PRE-PLAN A FUNERAL SERVICE?

Preplanning your own funeral, while difficult for most of us, can serve many purposes:

• It can help ease the emotional and financial burden for your survivors at a stressful time.

• It can simplify the financial responsibilities associated with paying funeral expenses, and protect against increased costs (pre-funded funerals). Paying for tomorrow’s funeral at today’s price.

• It can provide peace of mind for you and your loved ones that you get what you want as far as a funeral service selection.

WHY PRE-FUND A FUNERAL SERVICE?

Individuals and families can pre-arrange a funeral at no cost to them. The arrangements will be available once death has occurred. But many individuals wish to pre-fund their funeral now, so that the burden and responsibility of paying for the funeral does not fall to someone else.

Also, prepaying can be beneficial for those who someday may need to qualify for government services, such as Medicaid for long-term nursing home care. That's because prepaid funeral expenses usually don't count against the person's estate when the government determines financial eligibility. 

Two common options

Pre-funding your funeral with our funeral home is usually accomplished in one of two ways:  

1. Irrevocable Trust

• Place funds into a state regulated, irrevocable trust to be utilized at death to gain interest which will offset the cost of rising funeral expenses.

• Assets accrued into an irrevocable trust cannot be counted as an asset to you or your family if you need to apply for any state assistance. (i.e., nursing home cost)

2. Life Insurance

• New Life Insurance Policy – Take out a new insurance policy (no underwriting required) to be used at death for funeral expenses; irrevocably assigned to funeral home for use at death only.

• Existing Life Insurance Policy – Take your existing life insurance policies an assign them to the funeral home or at death by the beneficiary to cover the funeral expenses.