Based on what I am seeing as a Plano will and trust lawyer, more and more people are considering pre-planning and pre-paying for their own funeral. For years I have recommended that my clients include their wishes for their final arrangements in their estate plans, but more and more people are bringing it up proactively.
Some of the reasons that people want to take care of their own final arrangements include:
- Saving their loved ones the stress of dealing with this while they are grieving
- Making sure their wishes are carried out
- Setting aside funds to save their family the financial burden
- Spending down assets to qualify for Medicaid in some cases
The reasons mentioned above are very commendable, but it is important to do your homework before committing to any pre-paid program. Unfortunately, there have been a number of recent horror stories about pre-paid funerals.
In 2010, the California Department of Consumers’ Affairs Cemetery and Funeral Bureau found that one of the state’s largest pre-paid trust programs had misspent at least $12.6 million. That is a lot of money taken from well-meaning, honest people who were just trying to care for their families.
In addition to worrying about whether the pre-paid funeral industry is using your funds as intended, there are several other pitfalls that need to be considered before investing your money in a pre-paid funeral plan.
For example, if you decide later that you need the money that you invested in the pre-paid funeral plan for reasons such as family emergencies, you can lose a substantial amount of that money in cancellation fees. Further, pre-paying for your final arrangements with a life insurance plan can be even costlier. In fact, it is quite possible that you could end up paying a lot more money in monthly payments than your final arrangement will actually cost.
So, if you are trying to ease the burden for your family by planning and paying for your funeral, what are you to do?
That’s easy…talk to an experienced Plano will and trust attorney!
An attorney can help you pre-plan and pre-pay for final arrangements in a way that will be the most cost-effective and ensure that your family won’t have to deal with the stress at a time when they should be dealing with their own grief.
Simply call (214) 292-4225 to set up a planning session with us, your neighborhood Plano will and trust law office. You’ll be glad you did!