Funeral Pre-Planning FAQ
There are always many questions that you are faced with when planning a funeral. The questions below are most frequently asked about Funeral Planning. If your question doesn’t come up below please call us at (585) 720-6000. We will be happy to provide an answer.
Funeral Pre-Planning FAQs
By pre-planning this event, YOU have a say. And if for no other reason, it is an incredible gift to your survivors. At a time when they are grieving a loss; having part, or all of the funeral arrangements planned in advance prevents a lot of added stress for them. For many more reasons to pre-plan your funeral, click here.
Celebrity singer, Justin Bieber, pre-planned his final wishes at the tender age of 22. You can pre-plan your funeral at any age. People plan for many of life’s big events, what’s to stop you from planning the celebration of your lifetime? Pre-funding a funeral is not required, but if that is something you wish to do, budgeting your money over time helps make it doable!
It depends. You may add a codicil that allows the family to make certain adjustments that will fulfill their needs as arrangements are made to honor your life. Think about having family members attend your funeral pre-plan meeting while you’re still alive! It is a great idea so you can explore your and your family’s needs together. If you have concerns about next of kin following through with your final wishes, then consider assigning a “funeral agent.” This is a person of your choosing that is willing to carry out your plan. A funeral director will assist you in completing the documentation to assign a funeral agent.
First, take some time to think about your final wishes. What are your thoughts on how you’d like to be celebrated? Here are some questions your funeral director might ask:
• Do you want a funeral service, visitation or viewing?
• When and where do you want services held?
• Do you want speakers or musicians at the service?
• Do you have meaningful music or readings that you wish to be a part of your service?
• Do you prefer burial, cremation or another type of internment?
• Is there a final resting place you have in mind?
• As you plan your final services, are you aware of the needs of the people closest to you?
(consider inviting them to your pre-plan meeting!)
A lot of it depends on how simple or elaborate your thoughts are for your final life celebration. 1-2 hours is typical.
No, your plan may simply cover wishes for services upon your death. However, if you do have finances set aside or plan to assign life insurance monies to be used for financing your funeral, it is wise to make this known in your pre-arrangements, with family members or funeral agent.
It has been said that within 24-48 hours of a death up to 75 decisions need to be made regarding funeral arrangements. When it is known that your loved one is in decline, it is ok to plan ahead. It doesn’t mean you are ushering them out of this life. It may be an opportunity for you to help facilitate documenting their final wishes before they die. It also allows you to pare down some of the future stress during an emotional time.
Funeral Pre-Funding
When you decide to pre-fund your funeral, monies are placed into a bank in a trust account where interest is earned. Just as with any other bank account, you will receive routine statements.
A funeral home cannot legally draw from your pre-funded funeral account until your passing. Your payment goes to a bank or trust company account to manage the funds. As per New York State regulations, this trust is protected with FDIC insurance coverage.
It is important to understand the terms of your contract should you decide to revoke at a later date. It’s best to first seek the advice of a funeral provider or a customer service representative to have all the information needed to make a sound financial decision.
There are two type of accounts:
Revocable account
Having a revocable trust allows you to manage the money and cancel at any time, retrieving the cash value of the plan in place. The cash value may be conditional to the contract outline and may vary state to state. In New York State 100% of the principal and interest are retained by you.
Irrevocable account
An irrevocable funeral trust is typically used when someone wants to spend down funds for Medicaid eligibility by establishing an exempt asset. With an irrevocable policy, you cannot cancel the plan as the funds are now managed by New York State.
It’s always best to “read between the lines” and fully understand the details before signing any contract. And of course, keep a copy of the contract for your records. When the administrating financial institution receives the funds, they send an acknowledgment letter. You will receive an annual statement, but the funeral home can provide an updated balance at any time for you.
Anything can be included in your plan, but keep in mind the Medicaid criteria. Only “normal and customary” funeral expenses will be considered exempt assets with an irrevocable trust. Also, costs that are associated with third-party providers (cash advance items) are not typically price guaranteed. Examples of products that the funeral home will advance cash to: newspaper obituary, cemetery services, florist, caterer, or motorcycle escort services. These items are determined by a third party, so the funeral home is unable to guarantee their future pricing. This doesn’t mean you can’t set monies aside for cash advance items, just let your family know that certain expenses may not be covered in your pre-plan contract. It’s best to go over your funeral pre-plan with your loved ones so there are no unexpected surprises.
All trustworthy funeral homes and financial institutions will turn residual funds over to your beneficiaries.
Yes. However, the terms of the contract will change, such as product prices, price guarantees and/or discounts. Be sure to understand all your options before transferring your plan. In most cases, there should be no issues relocating a funeral trust to another funeral home.
If any expenses still remain, the surviving family members must cover the cost. Funeral trust accounts do not have accidental death or full coverage benefits.
As it relates to funding, you can make changes to the goods and services you originally selected keeping in mind this may change the funeral total. In order to make changes to the final disposition (burial or cremation) you must revoke your contract and begin again. Overall, if you want to make changes to your funeral contract, talk with your funeral provider to see what can or can’t be changed. Also remember that modifying an irrevocable account does not mean you can withdraw funds from the plan.
