If you are writing a will, setting up a trust or tackling other estate planning matters, it may be wise to think about your funeral. After all, you can save your loved ones a great deal of heartache and money by paying for your final expenses while you are still alive.
According to World Population Review, the average Floridian’s funeral currently costs roughly $7,600. When preparing your estate plan, you have some options for taking care of the expense, though. One option, a funeral trust, has become increasingly common.
What is a funeral trust?
A funeral trust is a financial arrangement between you and the funeral home. Essentially, you give the funeral home assets during your lifetime to hold in a pooled trust. When you die, the funeral home uses disbursements from the funeral trust to pay for your final expenses.
What expenses are eligible?
You should ask the funeral home about the final expenses its trust covers, as not all trusts are the same. Still, most funeral trusts cover a variety of funeral costs, typically including the following:
- Your cemetery plot, casket, urn or vault
- Your embalming or cremation
- The venue, officiant, flowers and food
- Obituary and death certificate fees
What should you watch out for?
Because funeral homes administer funeral trusts, you must find a reputable funeral home. That is, you should look for a service that has a history of providing competent and reliable services. You also should research whether the funeral home has a history of trust misuse.
Ultimately, because there may be some drawbacks to joining a funeral trust, it is advisable to discuss all your options with your estate planning attorney.