Estate planning involves addressing some unpleasant situations. It’s natural to feel apprehensive or uneasy when thinking about your own death, but taking the appropriate actions now can save your family headaches later on. One key issue you should always address as a part of your estate plan is your funeral arrangements. If you don’t, your family may have to pay for the funeral at a difficult time, and may net receive compensation.

Scenario 1: You pay.

The simplest way to make sure your family doesn’t have to pay for your funeral is to pay for it yourself. Funeral directors often offer pre-paid funeral options. You can enter into a pre-paid funeral arrangement now and make sure that your funeral is paid for without having to worry about the costs later. However, if the funeral home later goes out of business before it provides the service, you may be out of luck. Alternately, you can opt for burial insurance that pays for your funeral expenses.

Scenario 2: Your family pays and is reimbursed.

If you don’t plan ahead for your funeral expenses, the bill is typically left to your family members to pay. Funeral directors will require your family to pay for your funeral expenses, though they typically do not require immediate payment. Having your family pay for your funeral is often very difficult given the emotional and stressful time.

However, once your family pays, it may be able to receive reimbursement from your estate. Your estate is all your money and property that you leave behind. If your family members pay for your funeral, they can later file a claim with the estate to recover the expenses. Because the probate process can take a long time, your family may not be reimbursed for the costs quickly.

Scenario 3: Your family pays and is not reimbursed.

If your family members pay for your funeral and your estate doesn’t have enough money to pay them back, they may not get any money for the funeral expenses at all. If you leave behind more debts than assets, your state’s laws determine which of your creditors get paid first. In some situations, those paying for your funeral may not be entitled to any money at all.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A funeral may be the last big purchase you make in life. It’s not unusual for a funeral today to cost more than $10,000. Like any product or service, it is important to shop around and know your legal rights as a consumer.

The Federal Trade Commission, the nation’s consumer protection agency, enforces a “Funeral Rule” that governs funeral planning and the obligations of funeral homes. The Rule is designed to prevent funeral homes from forcing you to buy a “package” funeral that may include items you do not want. According to the FTC, the Funeral Rule requires a funeral home to:

• Give you an itemized price list upon request.
• Disclose any state or local requirement to buy a particular funeral-related item.
• Allow you to use a casket purchased elsewhere without paying an extra fee.
• Provide alternative containers for cremations.

Many states also regulate funeral homes and funeral services. You should consult with an experienced estate planning attorney to ensure your wishes with respect to funeral, burial or cremation services are clear to your executor and heirs. Your estate planning attorney can also advise you on the legal requirements funeral homes are obliged to follow in your state.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

The last thing anyone wants to really talk about is planning their own funeral arrangements, but it’s important if you have special wishes that you want to make known while you’re still alive. Some people want to be buried while others want to be cremated. Some people want a big funeral while others would prefer to have a small, graveside service. It’s important to let your family members and loved ones know what your wishes are. The best way to do that is by writing them down on a piece of paper and including important details.

First of all, you want to talk about whether you’d like to be buried or cremated, as well as the name of the mortuary you would like to handle things. You may have an opinion on whether you want your body to be embalmed and what kind of casket or container you would like for your remains to be in after your death. Some people want to choose who their pallbearers will be, if they’re going to be buried. If you’re going to be cremated, let your loved ones know if you want your ashes scattered somewhere special.

Some people even go as far as to stipulate what kind of music they want at their funeral. This is important information to give to your loved ones so that they don’t feel like they are doing the wrong thing for you. Speak with an estate planning attorney so that they can draw up the proper documents to keep on file. That way, your family will have all of your wishes in writing when the time comes. This will help to alleviate some of their grief and suffering as they won’t have to make those final decisions for you.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Planning a funeral – whether you’re doing it for a recently deceased loved one or you’re planning ahead to relieve your family of this responsibility – it’s something no one looks forward to. It’s also likely not something for which shopping around immediately springs to mind.

For example, in planning a funeral, most people simply choose one of the caskets offered by the funeral home they’re dealing with. But this is not a requirement, and it can seriously increase the cost of the funeral.  Funeral homes are required by the Federal Trade Commission to accept any casket bought from an outside source. And Florida is one of the states that doesn’t restrict casket sales to licensed funeral directors. So, as a Florida resident, you’re free to buy your casket from another source which, these days, includes warehouse clubs.

So, how much does a warehouse club casket cost? Costco offers models ranging from $950 to $2600. It also sells urns, including pet urns, as well as sympathy flowers and other funeral related items.

The bottom line? No matter where you buy a casket, don’t feel stuck with those on offer at a particular funeral home. And with the ability to shop around, planning ahead can not only save your loved ones heartache and stress, it can also save a significant amount of money.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Prepaying your funeral…sounds like it may not be such a bad idea, right? After all, it’s probably a good thing to go ahead and make all the arrangements and, best of all, make sure everything is paid for in advance. That way, your family doesn’t have to worry about it.

While pre-planning your funeral is a great idea, and, aside from having a solid estate plan, might be one of the kindest gifts you leave for your family; prepaying your funeral may not be the best idea.

The reason is pretty simple: despite what you may have heard, prepaying your funeral is likely to cost you more in the long run, plus, there are better ways to accomplish your goals.

Generally, prepaid funerals come in two types: guaranteed and non-guaranteed. With a guaranteed plan, the products and services you purchase are paid for at today’s prices, no matter when your funeral is actually held. Non-guaranteed plans do not offer this guarantee, but they do allow you to pay for your funeral ahead of time, and, if your account goes up in value, your heirs can keep the excess.

So, how do prepaid funerals end up costing more? First, any changes to the items you select often end up cancelling any price guarantee. Second, because prepaid funeral plans are generally funded either through the establishment of a trust or through the purchase of a whole-life insurance policy, there are often substantial fees involved if you want to get out of the plan. This is not to mention that the funeral home you have a contract with may not be in business when the time comes for your funeral.

The good news is that you can plan your funeral and arrange for payment without entering into a prepaid contract. You can establish a joint bank account, a payable on death account, or even a funeral trust so that your loved ones will have money specifically designated to cover your funeral expenses.

For more information on establishing a fund for your funeral, you can contact an estate planning attorney.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.