No one likes to think about death or
make funeral arrangements when griev-
ing for a loved one who has just passed
on. Yet, when that dreadful day arrives,
someone has to do it, and decisions have
to be made quickly and often under great
emotional distress. And, like it or not,
death is a costly affair.
According to Funeralplan.com, a free
online consumer information and educa-
tional resource on funeral planning,
funerals rank among the most expensive
purchases many consumers will ever
make. A traditional funeral, including a
casket and vault, costs about $6,000,
although extras like flowers, obituary
notices, acknowledgment cards, or lim-
ousines can add thousands of dollars to
the bottom line. Many funerals run well
over $10,000. That's why many choose to
preplan and prepay their own funeral.
Preplanning allows you to compare
prices and services so that, ultimately, the
funeral reflects a wise and well-informed
purchasing decision, as well as a mean-
ingful one. When you prearrange, you
have control over the decisions relating
to your death -- the disposition of your
body, the funeral or memorial service and
what you want your obituary to say about
your life. You also relieve your family of
having to make important financial deci-
sions during a period of great stress and
grief -- a time when people aren't think-
ing very clearly and may not know what
to do because you never made your wish-
es known.
Preplanning your funeral can be as
formal or as informal as you want it to be.
It can be as simple as following a pre-
planning checklist and sharing your wish-
es with a family member, or it can be
made in the form of a preneed contract,
which can be set up with a funeral direc-
tor and prefunded through life insurance,
a bank trust agreement, or another
method. When done properly, preplan-
ning your funeral can give you peace of
mind.
Below are some guidelines to follow,
courtesy of Funeralplan.com, should you
decide to preplan and prepay your funer-
al.
1. Plan the actual funeral. Shop
around and talk to a few funeral directors.
Compare prices for such things as a cas-
ket, embalming and the cost for profes-
sional services. Resist one-stop shopping,
which can include such things as prayer
cards, thank-you notes and guest registers
-- they add up quickly. Many opt for a
funeral home in their neighborhood for
personalized services.
2. Decide on body disposition. Do you
want to be buried or cremated? If you
want an earth burial, a cemetery plot
needs to be purchased; if above- ground,
a mausoleum crypt. If cremation is your
choice, make a plan for how you will dis-
pose of the ashes. Do you want them
stored in a columbarium niche or buried?
Maybe you prefer to have your ashes scat-
tered. An option some people take is to
donate viable organs and tissues to a
medical school.
3. Decide on the type of ceremony.
You may want a traditional funeral serv-
ice with visitation and a member of the
clergy conducting services at a church or
a funeral home. Will you want an open or
closed casket? Maybe you want a special
friend to do the eulogy or family members
to read scripture passages or poetry. Any
favorite hymns? If you would rather have
a memorial service (a service in the
funeral home or a church where the body
is not present), express that wish. A com-
mon misconception is that when a body
is cremated, you don't hold a funeral. You
can hold a funeral before cremation if you
want to.
4. Tally the total cost of the funeral.
Tally all costs, which will probably be
considerable, and decide about prepaying
with bank savings, trusts, life insurance,
or annuities. Some of the costs involved
include:
· Basic services fee for the funeral
director and staff -- a fee that customers
cannot decline to pay that includes serv-
ices common to all funerals regardless of
the specific arrangement: funeral plan-
ning, securing the necessary permits and
copies of death certificates, preparing the
notices, sheltering the remains, and coor-
dinating the arrangements with the
cemetery, crematory or other third par-
ties. The fee does not include charges for
optional services or merchandise.
· Charges for other services and mer-
chandise -- costs for optional goods and
services such as transporting the remains;
embalming and other preparation; use of
the funeral home for the viewing, cere-
mony or memorial service; use of equip-
ment and staff for a graveside service; use
of a hearse or limousine; a casket, outer
burial container or alternate container;
and cremation or interment (the act of
placing a dead body in a grave).
· Cash advances -- fees charged by
the funeral home for goods and services it
buys from outside vendors on your behalf,
including flowers, obituary notices, pall-
bearers, officiating clergy, organists and
soloists. Some funeral providers charge
you their cost for the items they buy on
your behalf. Others add a service fee to
their cost, which they are required to dis-
close to you in writing, although they are
not required to specify the amount of
their markup. Funeral providers are
required to tell you if there are refunds,
discounts, or rebates from the supplier on
any cash advance item.
5. Draw up a will. Regardless of how
much or how little wealth you have, it's
important to have a will unless you want
the state to take over after you die. Have
a lawyer draw one up for you. Organize all
the papers and important documents
you'll need to take with you to the lawyer.
Your will is an inventory of all that you
own -- real estate, bank accounts, stocks
and bonds (if any), annuities and life
insurance. List your personal property,
such as jewelry, paintings, and col-
lectibles, and specify who gets what. Be
clear about the distribution of your assets,
but don't forget to list your liabilities --
mortgage, loans and credit cards. Sign
your will and have it witnessed by two
people with their correct addresses
included (should they be summoned by
the court). You will need to designate an
executor to administer your will after you
die. And, if drawn up by a lawyer, the
original copy will be filed at his or her
office. A duplicate copy should be kept in
a safe place where survivors will find it --
like a safe deposit box. (Remember:
Whatever is in your will is not set in
stone. You can make changes to it any
time you want.)
K
C
M
Y
The Citizen. Auburn, New York
Secure Your Future
Wednesday, January 31, 2007
9
How to preplan and pay for a funeral
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DANIEL R. CUDDY
CPA, CFP
®
, CSA
*Advisory Representative
7 William Street, Auburn, NY
www.cuddyfinancial.com
252-3600
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