Prearranged Funeral

Funeral Pre Planning Prearranged Funeral

Prearranging includes preplanning for your funeral and prefunding which entails different methods of investing and paying for the services in advance. Though there are only pros to preplanning, paying for your funeral ahead of time should be considered very carefully. Never base your decisions on only one source of information. It is critical that you become an informed consumer. Do your homework. Ensure that you fully research the various options. Do not sign any contracts until you have fully read and completely understand them. You should also not feel pressured to prefund these services (as we do all hope that time is on our side).

Prearranging your funeral is a three-step process:

1. Preplan your funeral as outlined above and determine how much you can afford.
2. Make the arrangements by way of a preneed funeral contract, including all the goods and services that will be required.
3. Fund the cost of your funeral either through a regulated trust, life insurance, personal savings, certificate of deposit account designated for funeral expenses, or some other method.

Payable on Death Account

A POD, or Payable-on-Death Account, is a simple but logical approach to arranging for funeral expenses. An account of this kind is easy and free to set up with your local bank. How it works: you obtain from your bank a form for naming a POD beneficiary. You then write in the name and return the form to the bank, which completes this very easy transaction. It is not recommended that you name the funeral director as your beneficiary.

The advantage of this arrangement is that the funds do NOT have to go thru probate after your death. The funds will not be frozen unless your state and/or bank requires proof that any state death taxes have been paid. A bank employee can provide any further information you might need on this subject.

Pre-Need Burial Insurance

Depending on your situation, you may wish to purchase burial insurance. Even if your estate consists of life insurance, real property, stocks, bonds and other investments, generally they are not immediately turned into cash for your heirs. If you have little or no estate to speak of, this may be another reason to obtain some kind of insurance so that your loved ones are not faced with the financial burden associated with your funeral expenses. Do not sign any contracts until you have fully read and completely understand them. Ensure that you fully research the various options.

Burial insurance can be purchased thru an insurance broker or from the funeral director who will write a policy covering specific products and services you feel are necessary. Some of these include the casket, burial vault or grave liner, grave marker, hearse, flowers, digging and filling the grave and the actual cemetery plot. Embalming is only required if there is a public viewing of the deceased.

Since each state has its own laws on burial insurance, it is important to find out the law in your specific state. Take a friend or relative with you to help you with your decisions and be sure to verify that the individual or company from whom you are purchasing the insurance is licensed. It is also important to find out, in case you move to another state, that the arrangements you pay for can be moved to another funeral home at any time. In addition, be sure there are no blank spaces left in your contract that might be filled in later without your knowledge or consent.

When making plans to arrange for pre-need burial insurance, conferring with your spouse and children is a good idea. By doing this, not only are they made aware of your desire to make prior arrangements but they will be able to provide helpful input. Before making definite pre-need arrangements, it would also be beneficial to contact your attorney to be sure your arrangements are compatible with the instructions in your Will.

Other Financial Options

The Social Security Administration allows the sum of $255 in a lump-sum payment that can be used toward funeral expenses. This money is available to minor children of the deceased or to his or her spouse.

Free burial at a national cemetery is available to United States veterans and some civilians who have worked for either the military or the US Public Health Service. Expenses covered include a grave liner, grave marker and grave digger's fees to open and close the cemetery plot. However, no fees to the mortuary are included.

Some unions provide death benefits as do some social groups. The Railroad Retirement Board offers its members funds for use toward funeral expenses.

Related Topics
Burial	Cremation	Memorial Service