Pre-need

Thinking about your own funeral leaves most people feeling a little uneasy, but more adults are finding that planning their own service offers great emotional and even financial security for them and their families. With preplanning, families find comfort in knowing that the funeral reflects what their loved one wanted. It also gives them peace of mind to not have to make important decisions at a stressful time.

A funeral director can walk you through the prearrangement process. Once you’ve made your prearrangements, keep a copy of your plan and any pertinent paperwork in a safe place. Also, inform a close friend or relative what arrangements you have made and where the information may be found.

If you choose, there are several ways to prepay for your funeral that can offer you financial benefits. However, prepaying is not required, but an option that many individuals find helpful.

If you feel prepaying is wise for you, then be sure to go over all available options with your funeral director. Remember, like with any contract, ask any and all questions you may have regarding your preneed plan before you sign an agreement.

There are several methods available to pre-pay for a funeral:

• A regulated trust can be established by a licensed funeral director.
• A life-insurance policy can be purchased, equal to the value of the funeral.
• Individuals can establish a savings or certificate of deposit account earmarked for funeral expenses. The account can be designated as “payable on death” (POD) to the funeral home.

• Who receives the interest on the account?
• Who must pay taxes on the interest?
• Is the prepayment ever refundable, in part or in full?
• Can the plan be used at a funeral home of your choice?
• What happens if the funeral home goes out of business or is sold?
• In the event that you move, is the prefunded plan transferable?