It is often recommended that people make a will or trust, establish a power of attorney, and make sure that all of their files are in order, but many people overlook pre-planning and funding their funeral. While it may not necessarily be pleasant to think about, pre-planning and funding your funeral is a wonderful gift for you family. After your passing, they will be free to mourn and grieve their loss without having to stress over funeral plans or try to figure out how to pay for it. There are several ways you can fund your funeral in advance, such as:
One of the easiest ways to fund your funeral in advance is through an insurance policy. You may opt to purchase a funeral insurance policy that pays out upon your death, and the funds can be used to pay for your funeral expenses. Make sure that you name a beneficiary who is willing to take on the responsibility of dealing with the insurance company and working with the funeral home. It is also possible to purchase a life insurance policy and leave instructions for your family to use the money to pay for your funeral.
If you have cash on hand, you can establish a savings account with funds to cover funeral expenses. It is a good idea to name your beneficiary as a joint account holder so he or she can easily access the account when needed without having to wait for your estate to be settled. Doing this will make it much easier to pay for your funeral expenses in a timely manner.
Pay the Funeral Home Directly
If you know which funeral home you would like to handle your final arrangements, you can work with them directly to pay for your funeral expenses while you are still alive. One way to do this is by paying in cash, so when you pass away your family will just have to call the funeral home to make arrangements. You can also opt to establish a trust which names the funeral home as the beneficiary-- upon your death, the assets of the trust will be transferred to the funeral home.
When you work directly with a funeral home (such as Foran Funeral Home) to pre-pay for your final expenses, you may also want to work with the funeral director to make your wishes known about what type of funeral service you would like. Your wishes will be noted, which can make the funeral planning process much easier for your loved ones.