Brenda Lyle – Florida Today
Q: Should I Prepay for my Funeral?
A: At One Senior Place, we are committed to educating seniors and their families about the importance of planning ahead for the various aspects of aging. One of the critical areas where advance planning can make a significant difference is in funeral arrangements. While many seniors receive advertisements encouraging them to pre-plan or prepay for their funerals, it’s crucial to understand the difference between these two options. 
Both pre-arranging and prepaying for a funeral have their pros and cons, and making an informed decision can help relieve your loved ones of future stress and financial burden.
Pre-Arranging Your Funeral
Pre-arranging a funeral involves making decisions about your final arrangements in advance without necessarily paying for them upfront. This process typically includes the decision to be cremated or have a traditional burial. It may feel uncomfortable, but shopping around for funeral services can reveal significant price differences between providers (and states). By completing the pre-arrangement forms at your funeral home of choice, you can outline your preferences and wishes. One big benefit of this scenario is that it lifts the emotional burden off your family. Funeral directors admit that bereaved family members often “overspend” out of guilt or grief.
Prepaying for Your Funeral
Prepaying for a funeral means just that: paying for your arrangements in advance. This can be achieved through various methods, including whole life insurance policies and lump-sum trust payments. Some funeral homes, subject to state regulations, offer trust options where a lump-sum payment is placed in an interest-bearing account — with the funeral home acting as the trustee. Keep in mind that prepaid funerals are also allowed as exempt assets when planning for Medicaid.
If you are considering prepayment, be sure the funeral home answers these important questions:
- What happens if I pass away before the premiums are fully paid?
- Can the funds be transferred if I move to another state?
- What is the refund policy if I change my mind?
- Will the prepayment cover all future costs, considering inflation?
- What happens if the funeral home goes out of business?
Deciding whether to pre-arrange or prepay your funeral is a personal choice. Discuss the options with your family and possibly an estate-planning attorney, especially if Medicaid planning is involved. Don’t forget to add a “payable on death” beneficiary to your bank account to ensure access to burial funds. And remember to communicate your decision to loved ones and provide access to the necessary documents. Need help? One Senior Place, The Experts in Aging, can arrange a consultation with a knowledgeable professional. Visit www.OneSeniorPlace.com or call 321-751-6771 in Viera.
Brenda Lyle is a Certified Care Manager and Certified Dementia Practitioner with One Senior Place, Greater Orlando. One Senior Place is a marketplace for resources and provider of information, advice, care and on-site services for seniors and their families. Submit your questions to AskOSP@OneSeniorPlace.com. For immediate help, call 321-751-6771 or visit One Senior Place, The Experts in Aging.
