Consider a Funeral Trust in Your Estate Plan
March 11, 2022
You have a lot on your plate when it comes to estate planning including inheritance decisions and powers of attorney. That all depends on your wishes and the needs of your family. One question may go by the wayside though: what do you want for your funeral?
That may seem like an odd question. After all, your funeral is not really for you so much as it is for your living loved ones. However, planning for a funeral’s expense ahead of time may help alleviate stress on those loved ones as they grieve your passing. It is important to investigate the payment options for your funeral when considering this piece of your estate plan.
Payable on Death Accounts
One option, as Funeralwise.com describes, is a Totten Trust. While living, the beneficiary of this account—perhaps a loved one or the funeral home itself—has no control over the account. These payable on death accounts may avoid probate though remains revocable during your lifetime.
You may also use other trusts when entering into a preneed contract with a funeral home or cemetery. By setting these trusts up with a bank, you may deposit money over your lifetime to go towards the cost of your funeral. The funeral home can help break down the costs of your funeral to best respect your wishes.
When it comes to respecting your wishes, it is important to lean on any and all of your resources. Make sure that any contract or trust you enter into with a bank, funeral home or other party has clear, understandable writing that may help avoid confusion when grief hits your loved ones the hardest.