Wealth Strategies: Should I Pre-Plan My Funeral?
Milestone Wealth Management Ltd. - Jun 22, 2023
Planning for one’s estate is a multi-faceted and sometimes intimidating process. Estate Planning includes a range of tasks from creating a Will, designating a Power of Attorney, and outlining a Personal Directive to purchasing life insurance. But a trend that is increasing in popularity is pre-planning - and even pre-paying - one’s own funeral. Pre-planning a funeral may not seem like an enjoyable exercise; however, it does have its benefits.
Firstly, one can make their own decisions for the details of their funeral. An individual or couple can sit with a consultant at a funeral home and discuss all the diverse options involved with a funeral. Everything from flowers to the type of service can be discussed and decided on in advance.
Secondly, it eases the burden of responsibility on the loved ones left behind. At the time of one’s passing, the family and close friends are in a state of grieving, as well as potentially having to travel from a distance to attend the funeral. This may leave little time to make important decisions about the details surrounding the funeral itself. In addition, there could be disagreement about what one’s wishes would have been, so making those decisions ahead of time takes the burden of those decisions from loved ones.
Thirdly, if one chooses to pay for the funeral in advance, one may be able to lock in today’s cost, rather than be at the mercy of cost increases due to inflation. No one knows the future price of purchases or the future rate of inflation; however, we all generally accept that prices will likely be higher in the future than they are today. So, by locking in today’s cost for a funeral, it takes away some of the uncertainty of that future expense.
The disadvantage of pre-planning a funeral is primarily the discomfort with discussing one’s passing, which is very understandable. Additionally, the obvious disadvantage of pre-paying for that funeral plan is the fact that one is paying money today for something they do not need now. So that should also be weighed against the benefits noted above.
Pre-planning a funeral is an important element of Estate Planning and has many benefits. If you feel this is something you would like to pursue, you can simply contact the funeral home of your choice, and they will be able to begin the process for you.
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