Saving for Retirement - Pre-Paying for Funeral Costs
Say you plan to set aside money to cover the cost of your burial in order to spare your family the expense. If that is the case you have a number of options, but two of the more common ones include pre-planning your funeral with a funeral home and creating a Funeral Trust.
Pre-planning with a funeral home may sound like an easy way to go, but problems could pop up if the funeral home goes out of business or you move to another area and decide you want to be buried there instead. Pre-planning with a specific funeral home tends to lock you in with that provider. Funeral Trusts are a specialized form of Trust designed to cover the cost of a funeral. A Funeral Trust sets aside funds for your funeral but does not “lock you in” with a specific funeral home.
Whether or not you make financial arrangements ahead of time, you still may want to do some pre-planning. Consider the type of funeral you want, and write down your decisions and intentions. You don’t need to create a formal legal document; simply write down your desires, and sign and date the document. (And make sure a loved one knows the document exists.)
If it’s important to you, make sure your loved ones know your wishes in regards to your funeral.