Funeral Trusts, Part 2: A Checklist

In my last post on funeral trusts, I focused on some of the negatives associated with these types of arrangements.  However, I want to make it clear that I'm not objecting to funeral trusts for everyone; rather, I think that individuals interested in preplanning their funeral arrangements should perform some due diligence.  Perhaps this checklist would be a good start.

1. Do you want a "full" funeral, with a casket, viewing, etc. etc.? 

2. Do you have specific opinions about the type of funeral services you want?

3. Do you understand that your family members may still have to pay some expenses associated with your funeral and burial?

4. Do you anticipate that, at the time of your death, you will be living in the state and city where you current live?

5. Have you or will you take steps to let your family members and friends know that you have preplanned your funeral arrangements?

6. Have you decided whether the funeral trust will be revocable or irrevocable? Revocability is good if you might need the money in the future, but the trust will need to be irrevocable if it is being created as part of a "spend down" plan to qualify for Medicaid.  (Discussing Medicaid eligibility is beyond the scope of this article, but you may wish to start here for more information.)

7. Do you understand all aspects of the prepaid funeral contract, including the difference between the "guaranteed" and "non-guaranteed" portions of the contract?

Answering "yes" to these seven questions may indicate that prepaid funeral planning is right for you.  I think points 6 and 7 are particularly important, and may necessitate a call to an estate planning or elder law attorney.