A pre-paid funeral or burial plan is an arrangement where you pay in advance for your funeral and burial services. This type of plan allows you to select and pay for various funeral services and products ahead of time, ensuring that your final wishes are met and reducing the financial burden on your loved ones after you pass away.  It is a thoughtful way to ensure your funeral is conducted according to your wishes while providing financial and emotional relief to your loved ones. By putting your final arrangements in order really a gift to your loved ones. If you have carefully planned your estate by using a Trust or Will, the next step may be to also consider use of a pre-paid funeral or burial plan.

 

Key Features of a Pre-Paid Funeral or Burial Plan:

1. **Advance Payment**:

– You pay for your funeral and burial expenses upfront or through a one-time or a series of installment payments. This can include the cost of the casket, burial plot, cremation, memorial service, flowers, and other related expenses.

2. **Price Lock**:

– By paying in advance, you can lock in the current prices for services and products, protecting yourself and your family from future price increases due to inflation.

3. **Customized Planning**:

– You have the ability to plan and specify the details of your funeral service. This includes choosing the type of service, location, casket, urn, music, readings, and any other personal preferences.

4. **Contract with a Funeral Home or Provider**:

– The plan is typically arranged with a specific funeral home or service provider. The provider guarantees to deliver the agreed-upon services when they are needed, according to the terms of the contract.

5. **Transferability**:

– Some pre-paid plans are transferable, allowing you to move the plan to a different funeral home or location if you relocate or change your preferences.

6. **Funds Management**:

– The money you pay into the plan is usually held in a trust or a life insurance policy that is specifically designated for covering your funeral costs when the time comes.

7. **Protection from Probate**:

– Because the funds are set aside specifically for funeral expenses, they are often protected from being claimed as part of your estate during probate, ensuring that the money is used for its intended purpose.

8. **Medicaid Considerations**:

– In some cases, pre-paid funeral plans may be considered exempt from asset calculations when determining Medicaid (i.e., Arizona Long Term Care System [ALTCS]) eligibility, allowing you to set aside funds for your funeral without affecting your benefits.

Benefits:

– **Financial Relief**: Eases the financial burden on your family by covering expenses in advance. When you pass, others may not have immediate access to your account(s) and have to pay out-of-pocket and then wait for reimbursement resulting in financial burden. However, if you have already covered these costs no one else will need to.

– **Emotional Comfort**: Provides peace of mind to both you and your loved ones, knowing that your final wishes will be honored. At time of need, there is one phone call to make and very few “business” decisions.

– **Avoidance of Family Disputes**: Clarifies your funeral preferences, reducing the potential for disagreements among family members. We have litigated family disputes involving final disposition arrangements, such as burial versus cremation, and this is not the “legacy” anyone wants to leave with the family.

A pre-paid funeral or burial plan is a thoughtful way to ensure your funeral is conducted according to your wishes while providing financial and emotional relief to your loved ones.