Pre-Planning Questions...
Why should I prearrange my funeral or burial?
When you plan ahead, you will be able to compare the many options available.
You will be able to compare the services, the products and the prices among
different companies. You will have the opportunity to make an informed
decision about your funeral and cemetery arrangements, and the form of
memorial you prefer. You will be able to make choices that are meaningful to
both you and your family, and you will gain peace of mind knowing your
family and friends will be relieved of the emotional and financial burden
often associated with making arrangements when a death occurs. In addition,
by prefunding your funeral and cemetery services, a guaranteed price
contract will allow you to purchase at today's prices, free from
inflationary pressures in the future. We can help you pre-plan.
If I pre-plan and prepay my funeral or burial, how do I know that
the money will be there when I die?
If you decide to prepay your funeral or burial prearrangements, there are
generally two methods to assure the funeral home's and/or cemetery's
performance. Your money is either used toward a premium to purchase life
insurance whereby the policy proceeds will pay for your arrangements, or
your funds -- either the entire amount or a portion of them -- will be
deposited into a trust fund account to defray the provider's costs. Either
method should be disclosed to you and the contract should state whether or
not the purchase price is guaranteed; that is, whether you or your family
will have to pay additional amounts on the items you have selected in the
contract. A guaranteed price contract means that no further payment will
ever be required beyond the price stated in the contract for the items you
are purchasing.
If I prepay my funeral, what happens to the interest that my money
earns?
If you have a prearranged funeral or burial agreement that is comprised of
items that are guaranteed to be performed by the funeral home or cemetery at
no additional cost to you, the interest (or growth if a life insurance
policy) is retained by the funeral home/cemetery to offset the rising costs
of those specified goods and services over time. That's the value of
prearranging and prefunding at today's costs!
Can I change any of these prepaid funeral services later?
Changes are generally possible, but be careful. When changes are made, they
oftentimes affect the terms of guarantees that were created under the
original agreement. In the event funds paid toward a funeral plan are
excludable resources for purposes of receiving social services (SSI or
Medicaid), changing the terms of that agreement could jeopardize one's
qualification for assistance. It is not recommended that irrevocably
assigned funeral plans be changed in any way.
What if your funeral home or cemetery changes ownership?
Prior contractual agreements are not voided simply because a change of
ownership occurs. The funeral planning agreement you have with the prior
ownership is carried forward with successor owners as part of the purchase
agreement.
Is there a pre-payment penalty for paying off these arrangements in
advance?
It's not uncommon to have a small processing fee associated with an early
payment, but it should not be construed as a "penalty." In the long run,
there is usually a good amount of money to be saved by paying off early. Of
course, funding agreements vary. Please be sure to check the terms of your
(or your proposed) funding agreement for details.
Can social services take my pre-arrangements away from me?
Take away? No. Challenge the amount being set aside to pay for an expensive
funeral? Yes. Funds set aside to pay for a reasonable funeral arrangement
are not counted as assets as one qualifies for social services. Churchill
Funeral and Cremation Service, LLC. can provide counsel regarding the
amount local social services agencies consider reasonable and customary to
spend on a funeral.
