Funerals & Burials

Planning ahead for your funeral and burial can save a lot of heartache and uncertainty for those closest to you, and make it more likely your wishes will be honored.

It's a good idea to leave written instructions, in a document separate from your will, covering:

• Which mortuary you've chosen
• Where and how you'd like to be buried or your cremated remains stored or scattered
• What type of casket or cremation container you'd like
• The location of any memorial service and specific wishes such as pallbearers, hymns, religious rituals and receptions

Interacting With the Funeral Home

In most states, the family or a church group can handle a death without the use of a funeral home. But a funeral home can provide useful services that make it much easier to cope with a death, such as:

• Collecting, transporting, storing and preparing the body for burial or cremation
• Coordinating with the cemetery regarding burial arrangements

The Federal Trade Commission ("FTC") has established legal guidelines which funeral service providers must follow in dealing with consumers needing their goods and services. A single violation of these guidelines can result in a funeral service provider being fined up to $10,000.

Under the FTC guidelines, a funeral service provider must:

• Give anyone who asks in person about funerals or funeral services or goods a General Price List ("GPL") which itemizes all individualized items which are available to purchase. The list must be accurate, and not require a consumer to buy a package of services in order to use the funeral home.
• Disclose that embalming isn't required by law, or necessary when burial or cremation is within a day or so
• Allow the use of a casket purchased somewhere other than the funeral home, such as from a casket retailer
• Offer cremation containers other than caskets if cremation services are offered

When dealing with a funeral service provider:

• Shop around to comparison shop for the best prices
• Resist the pressure of hard-sell techniques that capitalize on the emotionality of planning a funeral
• Know the laws in your state as to what goods or services are required and which are optional. For example, burial vaults aren't required for cremated remains, and it's legal in every state to scatter or bury cremated remains on private property (with the property owner's permission, of course).

Prepaying Funeral Plans

There are many reasons to avoid paying funeral costs in advance:

• The funeral home has the use of your money without interest for an undetermined amount of time
• Prepaying doesn't protect against inflation for many costly third party expenses which must be purchased at the time of death, such as autopsies, crematory fees, clergy honoraria, obituary notices and flowers
• Prepaying doesn't protect you against embezzlement or the funeral home going out of business
• If you move or change your mind about your funeral plans, you probably won't be able to get a refund or have your balance transferred to another funeral home

A good alternative to prepaying funeral expenses directly to the funeral home is to establish what's called a "Totten Trust," setting money aside for your final expenses. A Totten Trust can be opened at your bank or savings and loan, and will be earning interest to protect you from inflation.

Funeral Insurance

Funeral insurance may not accomplish your intended purpose, because:

• Interest on an insurance policy probably doesn't keep pace with inflation and earns less than what is earned with a trust
• If your insurance policy is considered an "asset" when you apply for Medicaid, you may have to cash in it at a substantial discount
• If you stop making payments for any reason, you probably won't be able to get a refund

For these reasons, funeral insurance is a big risk.

Memorial or Funeral Societies

Local memorial or funeral societies can help you understand your state's rules as to funeral arrangements and what options are available at what prices. Although these societies may charge a small one-time fee for membership, they should be able to help you plan a much cheaper burial and funeral that is in keeping with your own individual tastes.

Related Web Links:

Information On Local Memorial and Funeral Societies

State Laws For Funeral Service Providers