No matter what age people are when they begin to invest in their future with estate planning, funerals are an inevitability worth preparing for. Funerals offer a chance for loved ones to grieve but also come at a high cost.
Funerals that have the backing of a pre-paid trust or preneed contract may help reduce the financial pressure that death and funeral often accrue—expected or unexpected.
A breakdown of funeral costs
As the National Funeral Directors Association, the average cost of a funeral in Texas ranges between $6,405 and $7,334 depending on whether a person opts for a cremation or burial service respectively.
These costs include basic service fees, use of facilities and staff as well as the casket. Even cremations have rental caskets in case the family wants visitation or viewing.
Other costs may include embalming for an open-casket viewing or a concrete vault if the cemetery in question requires it for burial.
A payment plan for funeral costs
Funeral homes or other estate planning options allow for funeral trusts or preneed contracts in order to pay off or supplement the overall costs of a funeral. Funeralwise.com highlights other options such as a professionally managed master trust program or payable on death accounts. Some of these plans may even help with spend-down plans that might help qualify for Medicaid.
Arranging for any of this requires contracts, be it through the funeral home or otherwise. For anyone looking into this estate planning option, it is important to clarify whether or not a contract conveys a person’s wishes clearly and considers his or her best interests.