There are many advantages of pre-paying your funeral before you pass away. The most obvious benefit is having the peace of mind knowing that your funeral and subsequent burial will happen exactly as you want it and that your family will not be burdened with additional expenses after you are gone.
But the Newport Beach probate lawyers at Morgan Law Group also want to make readers aware of the disadvantages of pre-planning your funeral, as well as other options to help you retain control over your final wishes and still make things as easy as possible on your loved ones.
Let’s start with some of the disadvantages:
- There is no guarantee that the funeral director will live longer than you will, nor that the funeral home won’t go out of business before you pass away
- If you haven’t chosen and paid for the exact plot that you want, your family may be forced to accept one in a less desirable location
- There is a chance that ground care would stop after you purchase the plot
- You could have problems transferring the pre-paid arrangements and plot if you move out of the area
- If the plan isn’t paid in full before you pass away, it might not be fully honored
- Depending on the interest rate, it’s possible that you end up paying more than necessary
One option for making sure that your funeral costs are close to the amount that you want to spend is to give your family a strict budget for things like a casket, cremation, funeral services and burial. If you don’t want an excessive amount of money spent, be sure to let your family know this and set a concrete dollar amount to go by.
Another option is to set up a Payable on Death account, also known as Totten Trust, and set money aside for your funeral expenses so that the money does not have to come out of your estate.
Need help with your estate planning? Call the Newport Beach estate planning attorneys at Morgan Law Group and ask about our free Family Wealth Planning Sessions ($750 value) and how we can help with your trust administration or probate needs. Simply call (949) 260-1400 to get started.