Five Reasons not to Prepay your Funeral Expenses by HammondLawCO

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While funeral planning is an important aspect of an estate plan, we offer the top five reasons not to enter into a prepayment plan with a funeral home.

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									Five Reasons not to Prepay your Funeral Expenses

While funeral planning is an important aspect of an estate plan, we offer the top
five reasons not to enter into a prepayment plan with a funeral home.

While funeral planning and providing for funeral expenses are an important aspect
of an estate plan, there are better ways to handle these tasks than entering into a
prepayment arrangement with a funeral home or mortuary. Here’s why:

1. Although there are several legal controls on how the funeral industry can
    handle and invest funds for future services, it is best to have your funds within
    a financial institution that is strictly regulated and has expertise in this industry.

2. Mortuaries and funeral homes can go out of business, and there is no guarantee
    in most cases that your funds will be returned to you, nor recourse for
    mismanagement or misappropriation of funds.

3. Often prepayment plans do not provide a method to withdraw the money in a
    financial emergency, nor to change your plans.

4. There is often no provision for relocation. People move and lives change,
    prepayment plans do not normally provide a method to choose another location
    should you move from the area.

5. Money paid now may not account for inflation of the future, leaving survivors
    to cover the cost difference.

Preplanning for your final arrangement makes good sense, but prepaying for these
services does not. This can be addressed within a comprehensive estate plan and
there are several way to provide for the expense of your funeral, including a Totten
trust, a payable upon death account in which a beneficiary can take control of an
account upon the passing of the accountholder, or with a Funeral Trust tied to life
insurance.

Explore options and plan carefully to ease the burden of your passing, and seek
advice to avoid making an uninformed decision in this sensitive area.

Experienced estate planning attorneys Colorado Springs CO of the Hammond Law
Group LLC offers estate planning and business planning resources to residents of
Colorado Springs CO. To learn more about these free resources, please visit
http://www.coloradoestateplan.com today.

								
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