Pre-Planning - The Thoughtful Decision:
Many people prearrange their funerals as part of regular estate planning. Many also choose to pre-fund those arrangements, although it is not a requirement to do so in many cases. In fact, many consumer advocates applaud the concept. Reasons for preplanning one's final expenses include peace of mind, relieving the burden on loved ones, or for purposes of SSI/Medicaid spend down. There are a number of advantages to preplanning and pre-funding funeral expenses. The primary advantage is that it allows individuals the opportunity to make personal and specific selections for the funeral service that most closely meets their needs. For many, it is comforting to know that money has been set aside for their final expenses, which will in turn reduce the burden on family members at a difficult time. In addition, loved ones are not left guessing which type of funeral service would have been preferred. Another very important reason to establish a preneed burial trust is that SSI/Medicaid recipients are allowed to set aside money to fully fund the service of their choice before their funds are exhausted down to necessary eligibility levels.
Preplanning your Funeral - Why
There are many advantages in preplanning your funeral. It's a simple procedure that doesn't take much time but ensures peace of mind and relieves your loved ones of making decisions at a stressful time. It allows you to make choices for your funeral service based on what you want. If you change your mind, preneed arrangements can be revised in accordance with new circumstances in your life.
Preplanning your Funeral - How
First, meet with your funeral director to explore your options. This can be done in the comfort of your home or office, or at the funeral home. There are many types of special, personalized services that you can discuss at this time. Your director will record all of the statistical and biographical information, your decisions and preferences, and gather documents necessary to carry out your wishes.
Once details have been finalized, your funeral director will prepare a preneed agreement and fully itemized statement for your review, and explain your choices for payment. These choices include prepayment, and, should you choose prepayment, he or she will prepare all of the necessary trust documents for you.
Pre-Planning - Consumer Information:
In keeping with their long-standing tradition of caring, funeral directors remain dedicated to helping families cope with end-of-life matters with quiet professionalism and attention to detail. They undergo a rigorous regimen of college-level study in mortuary arts and sciences, and funeral service. Before being licensed by the New York State Department of Health to operate as a funeral director, the aspiring funeral director must pass examinations on funeral directing and the laws, rules and regulations governing funeral directing.
As with many other suppliers of consumer goods and services, the funeral industry is subject to both Federal and State laws. One important regulation to protect consumers is the Federal Trade Commission's Funeral Rule which requires funeral homes to make available a general price list which details the cost of all funeral products and services being considered. Unfortunately, this requirement does not now extend to other providers of funeral goods and/or services such as casket stores, cemeteries and companies selling on the Internet. However, the rule may soon be amended to include these other providers in giving consumers useful information and the appropriate protection, no matter where or how consumers purchase funeral products.
Consumers in New York State benefit from the strictest, most comprehensive funeral preneed laws in the country. Thanks to legislation passed in the state in 1993, all funds paid in advance for a funeral must be deposited in an investment backed by the United States government such as FDIC insured certificates of deposit (or a NYS bank). Account statements showing interest earned must be reported annually to the consumer, or within 30 days after the consumer's request. All funds are completely portable to any funeral home anywhere at any time; all funds must be repaid to the consumer upon their request (with the exception of Medicaid recipients). The law also requires that there be no commission, fee or other monetary consideration of any kind paid to a funeral firm or funeral director as a result of where the consumer's dollars are placed in trust.
Although preneed insurance that would allow funeral firms to be named as beneficiaries of dedicated preneed life insurance policies exists in some other states, New York State does not allow this form of payment for funerals - and for good reason. This type of insurance is usually expensive; does not keep pace with inflation and has few if any protections for consumers' money. For instance, if the purchaser stops paying premiums for preneed insurance, they lose all benefits, and all monies that have been paid to that point.
Even though arranging a funeral occurs at a stressful time, the wise consumer should remember to ask questions. Funeral directors expect questions, and are always ready to consult with families as partners to ensure a dignified and appropriate remembrance of a loved one's life.
Pre-Planning - Additional Resources:
We are always available to answer your questions, and have various informational brochures available for you. To request further information, or to schedule an appointment with us, please click on contact us.
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