subject: FUNERAL PRE-ARRANGEMENTS HOLD THE LINE ON INFLATION [print this page] Much time is invested during the course of your lives in planning for what comes next. During high school, you consider your college education, selecting a career major and securing tuition financing. Later you pursue jobs, plan your wedding, and decide when to start a family, buy a home, take that vacation or retire.
Admittedly, thinking about end-oflife issues, discussing them with family and friends and then acting upon them, may not be easy matters to consider. Nonetheless, they benefit from the same preplanning approach that serves you well when handling other important choices.
Funeral preplanning, or pre-need as it is often referred, simply means planning your funeral at a time when it does not place you or a loved one under pressure. It typically includes exploring options for services and examining costs to ensure the beneficiary receives the final farewell he or she desires. According to the National Funeral Directors Association (NFDA), most American funeral homes now offer some type of prearrangement option to their clients.
When a loved one dies, family members must make complex choices and complete strenuous paperwork. If there is a pre-arrangement in place, family members and friends are relieved of the burden of having to make such decisions, enabling them to come together to properly reflect and grieve. Preplanning helps minimize costs by selecting merchandise and services at today's pricing. Family members are increasingly likely to spend more money on a funeral if they make decisions while under duress.
Often, a concern of funeral pre-planning is prepayment. Prepaying protects you from inflation, providing protection in case the need arises earlier than anticipated. Your funeral director can assist you in creating a contract and establishing your funding options through arrangements like life insurance or trust agreements. The National Funeral Directors Association (NFDA) developed the Bill of Rights for Funeral Pre-planning to help individuals and families understand what to expect from a preneed contract. After the arrangements are made, file a copy of the plan and any related paperwork somewhere safe, making sure to let a close friend or relative know that there are arrangements and where the information is kept.
Most funeral homes guarantee that relatives will not pay any increase in cost if inflation drives prices upward. Many also allow their pre-need contracts to be portable to other facilities if needs or circumstances change. Your money is held in the funeral escrow account until time of need. These payments will cover expenses at the actual time of death.
Such a plan also protects funds earmarked for funeral expenses against Medicaid liquidation. In Michigan, for example, Medicaid rules dictate that pre-paying of funeral expenses is allowed and these funds cannot be counted as an asset by the State when consideration for Medicaid is being made. Thus, monies can be set aside to fully fund the service of choice before funds are exhausted down to eligibility levels.
Pre-paid funeral funds are deemed non-countable assets for individuals who live in nursing homes and pre-paid funeral expenses serve to reduce assets, allowing applicants for Social Services assistance to become eligible sooner.
Another argument for pre-arrangement is that standard life insurance policies often the source of funding families utilize for funerals - may ot defray the actual inflationary costs. Instead, they may leave you, your family or estate vulnerable to pay the difference between today's and tomorrow's prices.
Pre-need arranged funerals clearly spell out the desires of the individual and minimize potential arguments that sometimes arise within families regarding such decisions: Did Mom or Dad hope to have a traditional burial with their final resting place with their parents, or a cremation?
You can be reassured that your loved ones will know your last wishes and be free of the emotional stress and financial burden that can come with funeral planning. The benefits and peace of mind gained through funeral pre-arrangement are priceless.
FUNERAL PRE-ARRANGEMENTS HOLD THE LINE ON INFLATION
