A “pre-need” funeral may not cover every item of service you and your family expect, and there’s often no guarantee that the money you pay today will keep up with inflation to pay the cost of the service you’ve picked out. Please don’t fall prey to the typical sales pitch which may force you to feel that unless you pre-pay for your funeral you are leaving the burden of decision-making to your children in their time of grief.
We like to tell people that pre-planning a funeral is a wonderful idea, but there is no reason to pre-pay.
As with any other major purchase, we advise people to shop around and discuss funeral planning thoroughly with family and friends. Making your wishes known to them, and listening to what they might need, is probably the most important task in planning your funeral.
You’ll find information here on the FCA North Carolina website that can help you navigate the often-complicated process of funeral planning.
As for making sure money is available for your funeral, one of the best vehicles we know of is called a Totten Trust, or pay-on-death account. This is a trust fund you set up at a bank.
With a Totten Trust you choose the beneficiary (we don’t recommend naming the funeral director) and deposit any amount of money you wish. When you die, the money is immediately released to the beneficiary rather than being tied up in probate. Totten trusts remain in your name, they are portable, and the interest accrues in your account.
The Funeral Rule, enforced by the Federal Trade Commission (FTC), makes it possible for you to choose only those goods and services you want or need and to pay only for those you select, whether you are making arrangements when a death occurs or in advance.
The Rule allows you to compare prices among funeral homes, and makes it possible for you to select the funeral arrangements you want at the home you use. (The Rule does not apply to third-party sellers, such as casket and monument dealers, or to cemeteries that lack an on-site funeral home).
Your Rights Under the Funeral Rule of 1984