Final Wishes Planning In North Dakota
Funerals Today
• Each year, Americans spend billions of dollars arranging more than 2 million funerals for family members and friends • The trend toward pre-need planning - making funeral arrangements in advance - is increasing • Why preplan a funeral?
– Consumers want to compare prices and services – Permits a funeral to be a wise and well-informed purchasing decision, as well as a meaningful one – Look at it as an extension of will and estate planning
Funerals Today
• A funeral is one of the most expensive purchases a consumer will ever make • Traditional funeral, including a casket and vault, costs $6,000 to $8,000 • Extras, such as flowers, obituary notices, acknowledgment cards, can add thousands of dollars, so many funerals today run more than $10,000
Preplanning vs. Prepaying
• Preplanning for your funeral involves:
– Comparing prices – Discussing plans/leaving instructions with family – Making decisions about funeral and burial goods and services that do not require payment in advance
• Prepaying for funerals and burials involves:
– Entering into a pre-need agreement or contract to pay in advance for goods and services you will receive upon death – Third party, trustee or insurance company assuming responsibility for the management of the funds
Pre-need Planning
• Relieves your survivors from the stress of making difficult decisions under the pressure of time and strong emotions • Allows you to make informed and thoughtful decisions about your funeral arrangements
– Type of funeral – Where to be buried – Music, flowers, eulogy, pallbearers, cultural traditions
• Allows you to choose the specific items you want and need and compare prices offered by several funeral providers
Prepaying
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Keep in mind that over time, with prepayment, prices may go up and businesses may close or change ownership. Further, in some areas with increased competition, prices may go down. Three options available:
1. 2. 3. Bank account Trust account Insurance policy (many prefer this because of cost increase due to inflation)
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Money you assign will be protected by the FDIC or the insurance commission You do NOT give the money directly to the funeral home to deposit into its account Funds must be made transferable to the funeral home of your choice and you will receive 100 percent of what you deposited, plus interest, at the time of need
What kind of funeral do you want?
• Traditional, fullservice funeral • Nontraditional or memorial service • Cremation alternatives • Bequeathing service • Veterans funeral • Masonic funeral • Direct burial
Choosing a Funeral Provider
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Visit several funeral homes and cemeteries to comparison shop, (preferably before the need arises) When comparing prices, consider total cost of all items in addition to cost of single items Determine if the facility, atmosphere and staff suit your family Can service be personalized and your wishes accommodated? Ask others who have used funeral services Select a funeral director who is licensed and has a good reputation in the community Ask if funeral home is locally owned (if this is important to you)
When a Loved One Dies Away From Home
• Contact funeral home in North Dakota that will be making the arrangements • May cost you more to use an out-of-state funeral home to make the initial arrangements
Medical Assistance and Funeral Prefunding in North Dakota
• Burial exclusion for the “asset test” with Medical Assistance in North Dakota is set at $5,000 • This means people receiving Medical Assistance in North Dakota (such as for nursing home payment) can set aside up to $5,000 of their assets for funeral expenses • This is called a “designation,” and the funds can be placed in a certificate of deposit, etc.
– Source: North Dakota Legislature, 2005 (HB1181)
According to the Funeral Rule:
• You have the right to choose the funeral goods and services you want (with some exceptions) • The funeral provider must state this in writing on the general price list • If state or local law requires you to buy any particular item, the funeral provider must disclose it on the price list, with a reference to the specific law • The funeral provider many not refuse, or charge a fee, to handle a casket you bought elsewhere • A funeral provider that offers cremations must make alternative containers available
– Federal Trade Commission, 1984
Funeral homes must provide itemized prices for the following products and services:
• • • • • • • • • • • • • • • • Direct cremation Immediate burial Basic services of funeral director, staff and overhead Transfer of remains to the funeral home Forwarding of remains to another funeral home Receiving remains from another funeral home Embalming Other preparation of the body Use of facilities and staff for viewing Use of facilities and staff for funeral ceremony Use of facilities and staff for memorial service Use of equipment and staff for graveside service Hearse Limousine Either individual casket prices or range of casket prices that can be found (Federal Trade Commission, 1984)
Pre-need Planning Includes Making Decisions About:
• Where will the remains be
– Buried? – Entombed? – Scattered?
• If you already own a cemetery plot, consider the following:
– – – – – Location of deed Deed number Date purchased Location of family plot Which spot within the family plot
Pre-need Planning Can Include: Writing Your Own Obituary
• Family dealing with grief, and obituary may be delegated to someone outside family who does not know you • Family members don’t remember specific dates (employment, retirement, previous deaths) • Family members don’t always know your membership in organizations or community groups • Favorite charity may not be known to your family • You know best what’s important to include and what is not!
Consider “Tributes to a Loved One”
• Funeral/memorial service
– Create a picture board – Display items used for a favorite hobby – Display uniform/equipment
• After the service
– Creating a memory box with person’s favorite items – Donating gift of money or time to person’s favorite charity – Planting a tree or rose bush in person’s memory
• Other ideas?
Dealing with Grief
• We each grieve in our own way • How we handle the loss of a loved one depends on our backgrounds, how the person died, how close we were to the person, our age and many other factors • A number of community resources and support groups, online literature and support groups, as well as books, might be of assistance as we go through this difficult time
Advance Directives
• North Dakota recognizes two forms of advance directives:
– Living will – Durable power of attorney
• You do NOT need an attorney to develop an advance directive • For more information and forms, contact your health-care provider or your attorney, or check out this Web site: www.ndseniorinfoline.com (click on aging services publications)
Estate Planning Involves
• Distribution of your assets to people you choose after you are deceased • Usually involves preparing a will, and for some, the creation of real estate trusts • Can include funeral plans, name of your designated executor, plans for organ donation, child care and guardianship • Planning early is important! • Advantage of having a will is that you avoid the probate process, where the court splits up your possessions