Benefits of pre-planning

A little forethought, a great deal of effort-- A funeral and the bereavement that goes with it will affect a family and loved ones both emotionally and financially. But with a little forethought and pre-planning, we have the opportunity to relieve some of the burdens from those closest to you. When you think about it, pre-planning is something that we do all the time. We put money aside for travel, for retirement and important events. It makes sense to approach the planning of a funeral in the same way. With the help of a professional funeral director, it is really like writing out your will. Not sad and somber, just basic, direct and honoring your wishes.

Making Your Own Choices

This is a good opportunity to have a family discussion about your preferences. This way everyone is aware of your wishes and knows who to contact and where your important papers and documents are kept.

By preplanning a funeral, you choose the type and style of service you wish and how much you want to spend.

A few decisions now will save your family a lot of anguish later on:

• The type and style of funeral
• Whether you prefer burial or cremation
• Which cemetery or crematorium
• The type and style of coffin or casket
• The type of death notices, flowers and funeral vehicles used
• Special features in the service, such as music or a poem
• The wishes of your family and friends
• How much you want to spend

After all, why shouldn’t this be your choice?

Preparing to Pre-Plan 

First, you need to set up a meeting with a funeral director. This can be at home or at the funeral director’s office, whichever you prefer. Your funeral director will guide you through the planning process, explaining the products and services offered and the costs involved. You can arrange the funeral you want. These will be your decisions, in your time.

How Is The Plan Carried Out

A relative or personal representative simply contacts the funeral director, and the funeral director puts into effect all of your pre-planned decisions.

What If The Funeral Director Goes Out Of Business?

You should ensure that the money you pre-pay is invested with, and held by, an independent entity, and that it is not accessible to the funeral director until the service has been provided. If your original funeral director is no longer in business, you need to transfer your plan to another funeral director.

Who Is Legally Responsible For Arranging A Funeral?

Legal responsibility rests with the executor appointed under the Will of the deceased. You should make sure your Executor is familiar with, and agreeable to the wishes that you want to be carried out, and is aware of the details of your pre-planned funeral contract.

What If There Is No Will?

If a person dies without a valid Will, usually the closest next of kin will have the right to apply to act as an administrator of the estate and complete the funeral arrangements.

What Happens If Someone Dies In A Hospital?

The attending doctor will normally be able to sing a death certificate or the Medical Examiner’s Certificate. The funeral director will then arrange for the transportation of the deceased, registration of death and make all the funeral arrangements.

What Happens When Someone Dies Interstate Or Overseas? Is Insurance Available?

The funeral director should be notified immediately and will arrange the transport of the deceased and attend to any statutory or customs requirements. In these circumstances, there is usually an additional fee for the transportation of the deceased.

What About Sudden Or Accidental Death?

Should a person in apparently good heath and not under the care of a doctor die suddenly or as the result of an accident, the Coroner must be notified.

What Is The Role Of The Coroner’s Department?

When a hospital, doctor or individual advises the Coroner’s department of a death, the Department contacts the police. The police arrange for the transportation of the deceased to the Coroner’s office. The Coroner seeks to establish the cause of death, either by contacting the deceased’s doctor, or by performing an autopsy.

What is the difference between preplanning and prepaying? 

You can preplan your funeral WITHOUT paying now. But, be sure to compare several funeral homes before deciding. It’s important to choose a funeral home that has a good reputation as well as competitive prices. Once you’ve selected a funeral home, you can discuss your wishes with the funeral director…read full article

Are there advantages to preplanning funeral arrangements? 

Yes. Preplanning can give you the opportunity to select a funeral service which will meet your needs and wishes. It can reduce the concerns of your family or friends who would otherwise have to guess what you would have wanted for your funeral. A local funeral director can provide professional advice on this important matter.

Are there advantages to prepaying funeral arrangements? 

Yes. You can have the peace of mind that comes with knowing that the money needed for your funeral has been set aside. If the funeral director…read full article

Are there drawbacks to prepaying? 

Yes. As with any financial transaction, there are potential drawbacks. There are some things you must study carefully before entering into a prepaid funeral arrangement:   

• Make sure you always have a pre-need agreement for services whenever you prepay a funeral, whether it is directly with a funeral home or on your own with the funeral home as a beneficiary.
• Let someone you trust know that you have prepaid your funeral arrangements and the name of the funeral home. Otherwise, they may select a different funeral home and pay again.
• Always deal with a funeral home with which you are familiar and comfortable, or that has been recommended by someone that you trust.
• Know how and where your money is being deposited.
• If you pay by cash, get a receipt and keep it in a safe place.

How do I prepay my funeral? 

Contact several funeral homes to compare prices. It’s also important to choose a home with a good reputation within the community. Once you’ve made your choice, meet with the funeral director. Prior to making any selections, the law requires the funeral director to give you…read full article

What is a “guaranteed” funeral? 

With a guaranteed funeral, the funeral home guarantees to provide the services, merchandise and facilities you selected for the amount of money in your account. The guaranteed funeral is not affected by future price increases since the funeral home accepts the principle and interest as payment-in-full. Your estate will not have to pay anything extra for those items that are guaranteed. A guaranteed funeral will not include certain items, such as cemetery costs, clergy fees, death certificate fees, etc. However, the funeral home cannot charge more than its ACTUAL cost for these items.

What is a “non-guaranteed” funeral? 

With a non-guaranteed funeral, the funeral home provides the items and services you selected, at the rates being charged at the time of your funeral. The principle and interest of your account will be applied to the home’s total charges. If this amount does not cover the expenses, your estate will be charged the difference. If the amount in your pre-need account is greater than your funeral costs, the excess money will be refunded.

Is it possible to prepay cemetery, crematory, clergy and death certificate costs? 

Yes. But many funeral homes prefer not to include these expenses because they have no control over them. If you want to prepay these expenses, they will probably be non-guaranteed. As an alternative, you can deal separately with the cemetery or crematory, or monument dealer.

What happens to the money I prepay to a funeral home? 

The funeral director must deposit your money within 10 days in an interest-bearing account or a government-backed investment, such as U.S. Treasury bills.

How will I know my money has been deposited? 

The funeral director must notify you where your money has been deposited within 30 days of the deposit. Also, the location and amount of interest earned will appear on the IRS form 1099-INT (or equivalent) sent to you in January of each year. Check the account information carefully each year. Also, upon your written request, the funeral home must advise you of the total value of your account, including principal and interest.

Am I responsible for paying income taxes on the interest earned by this account? 

Yes, it is your money.

Can I get my money back if I change my mind? 

Yes. You can withdraw the principal and the accrued interest at any time. The funeral director cannot charge any processing or administrative fees, or penalties for early withdrawal.