Most individuals would rather skip making concrete plans for their death and funeral proceedings. But for the few who prefer to take the other route, early preparations for end-of-life affairs can save a ton of problems in the future.
When it comes to leaving funeral preparation instructions for loved ones, two common routes include securing a prepaid funeral plan or outlining wishes within your last will. Both approaches aim to handle some heavy lifting in advance and minimize the burdens on surviving family members.
Each option provides different pros, cons, costs, and levels of control. We’ll discuss some of them in this article. Read on.
Prepaid Funeral Plans: Pros and Cons
Pre-arranged or prepaid funeral plans involve entering into a contract with a funeral director and paying for as many or as few funeral expenses as desired in advance. Casket, urn, burial plot, viewing arrangements, flowers, and service officiant are a few of the common inclusions, often reflecting current market pricing.
Pros:
- Fixes funeral costs at current prices: Prices are likely to rise over the years with inflation, so paying for funeral services in advance means you’re paying for today’s costs before they go up. This prevents an unexpected financial hit to grieving family members later on.
- Lifts future financial burden from family members: While some burial insurance policies may cover funeral costs and other related financial liabilities, prepaying eliminates the need for loved ones to come up with thousands in funeral expenses during a difficult time. Instead, they can execute or oversee the pre-planned arrangements.
- Gives you control to pre-arrange all details: Since it’s all paid for, you can decide which components to include rather than leaving your family guessing or using their budget constraints to guide decisions.
Cons:
- Prepaid funeral plans carry risks: Most prepaid plans are tied to specific funeral homes. So, suppose you relocate across the country, or your designated funeral director closes the shop. In that case, extra charges will likely apply to its replacement. Funds for prepaid funeral plans are only accessible by the funeral home and not by the grieving family.
- They’re less flexible: Incorporating different services, upgraded casket, or third-party costs not outlined in the prepaid plan typically requires additional out-of-pocket payment from grieving family members. These plans don’t cover new requests from the family if they aren’t in the agreement.
- Non-transferrable and non-refundable, even if unused: Usually, prepaid funeral funds can only be used for the contracted individual’s funeral arrangements. The remaining balances stay with the funeral home if your plan goes unused.
Wills: Pros and Cons
Alternatively, individuals might outline their last wishes, including burial preferences, in their will. This legally binding document is more popular for posthumous estate planning but may include the deceased’s final requests. It can be used to guide survivors in handling funeral preparations and asset management issues.
Pros:
- Wills offer greater flexibility: Unlike a prepaid funeral contract, a will can be updated regularly to accommodate changing preferences as you age. Wills can adapt to shifting family dynamics, for example, when estranged relatives reconcile, when divorces happen, or if new caregivers enter the picture.
- Burial expense allocation can be accessed by the family: Those wanting to pre-fund parts of their funeral can still earmark savings, purchase funeral insurance, or open joint accounts with trusted relatives. These options keep money accessible to heirs if plans transform over time.
- Wills can accommodate last-minute requests from loved ones: Taking directions solely from a will versus a paid contract allows families more freedom to personalize services, even if that means going beyond the initial plan. Simply put, it offers more options compared to prepaid funeral terms.
Cons:
- The deceased has no control if their wishes aren’t honored: Despite the best intentions, heirs can always go against, or contest wishes stated in a will after the testator dies. This could mean funeral details will stray from what was envisioned.
- Wills could leave funeral expenses unpaid without proper funding: Unlike a prepaid plan, a will alone does not set aside funds. So, funeral costs fall squarely on the shoulders of grieving friends and family members.
- The family must research, arrange, and make decisions while grieving: Without preplanning, survivors must navigate a bevy of decisions on funeral arrangements while still processing grief. This difficult administrative burden gets placed on their shoulders during an enormously tough time.
The Bottomline
Prepaid funeral plans lock in costs and arrangements but come with less flexibility. Conversely, a will allows fluidity to meet new needs but may put planning pressure on grieving families. Most experts suggest a balanced approach – prepaying some funeral expenses and outlining desires in your will or other legal documents. This takes care of the people you love while giving them room to personalize. The key is communicating these plans now instead of leaving difficult surprises later.
The ideal path forward often incorporates a balance of some prepayment while guiding family executors on carrying out your legacy. But the most important element with any planning is communicating about these decisions instead of letting the weight of uncertainty fall on your loved ones down the road.
