Prepaid Funeral Plans
People creating an estate plan often wonder about how funeral expenses will be
paid, and may turn to prepaid funeral plans as one option. If you're considering a pre-
paid funeral plan, you should first educate yourself about how they work and what they
offer. There are two basic types of these plans: guaranteed and non-guaranteed. You may
also want to talk to your estate planning attorney about other funeral expense options,
such as funeral trusts or an insurance policy that covers expenses.
Guaranteed Plans: These plans offer the ability to pay for your funeral expenses
now, at the current market prices, and use those services once they are needed,
regardless of how long in the future that date is. These plans are popular because they
offer the chance to minimize expenses and avoid price increases later.
Non-Guaranteed Plans: These plans, as their name implies, do not guarantee the
goods or services bought from the funeral director. They typically do guarantee,
however, that any prepaid accounts that increase in value will have the gains passed on
to your heirs.
It's also important to note that prepaid funeral plans may not pay for all expenses.
The plan may, for example, not cover flowers and music, and choosing additional
services such as upgrading to a new casket may actually void the price guarantee. It's
best to speak to an estate planning lawyer before committing to a prepaid funeral
service. Establishing a simple trust can provide the same benefits at an often
competitive rate and with fewer risks and may be something you’ll want to consider.
Experienced estate planning attorneys Crown Point IN of the John M. O'Drobinak P.C.
offers estate planning and business planning resources to residents of Crown Point, IN.
To learn more about these free resources, please visit www.odrobinaklaw.com/ today.