Estate planning covers a lot of things, from wills and guardianships to trusts that preserve assets for future generations. All of it is in preparation for the inevitable, in hopes that any and all financial processes after death go smoothly.
It might be easy to fixate on loved ones or the future, but one way to make things for the family is to arrange for funeral expenses and planning ahead of time with a preneed.
The funeral preneed
A preneed is an arrangement that provides a number of options and flexibility when planning for death. According to the American Association of Retired Persons, over 30% of surveyed individuals claimed they prepaid for a funeral.
This happens in a couple of ways. Preplanning involves shopping around funeral homes, determining grave plots and potentially deciding on services. It does not necessarily involve paying ahead for anything, but knowing the estimates and saving up may help ease the financial burden of loved ones.
The other way is prepaying, which often involves a funerary trust between someone and a funeral home or insurance company. Any money placed in the trust falls under the ownership of the trustee and is unavailable to withdraw outside canceling the agreement.
Planning ahead
The Georgia Consumer Protection Division estimates that funeral and burial costs easily reach $10,000 and advises a number of precautions. These precautions include making sure to get any agreement in writing, comparing posted prices to contract prices and double-checking with Georgia law when it comes to fees or refusals on the part of a funeral provider.
As with most estate planning, funeral planning may seem complicated. But with the right resources and guidance, pre needs offer a way to ease the stress on loved ones during a time of grieving.
