Planning for Funeral Costs Checklist

Understanding Funeral Costs

Planning a funeral involves many decisions, and it's important to understand the costs associated with each choice. Typical funeral expenses include:

• Basic services fee for the funeral director and staff
• Charges for other services and merchandise, such as transporting remains, embalming, viewing or visitation, use of the funeral home, etc.
• Casket or urn costs
• Cemetery plot or cremation fees
• Grave marker, monument, or headstone
• Flowers
• Obituary notices
• Clergy or officiant fees

Funeral costs can vary widely depending on your location and the specific services you choose. According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial was $7,848 in 2021. Cremation tends to be less expensive, with a median cost of $6,970.

It's important to remember that these are just the basic costs. There may be additional expenses like catering, transportation for family, or memorial printed materials. Understanding all the potential costs can help you plan and budget appropriately.

Estimating and Planning for Funeral Expenses

To get a better idea of what your funeral might cost, consider the following:

1. Decide on the type of funeral you want - burial or cremation, traditional funeral service or a more simple memorial, etc.

2. Contact several funeral homes to get price lists. Funeral homes are required by law to provide detailed price lists over the phone.

3. Check with cemeteries, crematoriums, and other service providers for their prices.

4. Factor in additional costs like flowers, obituaries, reception, etc.

5. Consider any pre-arrangement plans or funeral insurance you may have.

Once you have a rough estimate, start putting money aside in a dedicated savings account or consider setting up a funeral trust (more on this in the next section). If your budget is tight, look for areas where you can cut costs, like choosing a less expensive casket or having a simpler service.

Remember, planning ahead can help alleviate financial stress on your loved ones during an already difficult time.

Establishing a Funeral Trust Fund

One way to plan ahead for funeral costs is to set up a funeral trust fund. This is a special type of trust that sets aside money specifically for funeral expenses. Here's how it works:

1. You place money into the trust, either in a lump sum or through regular contributions.

2. You name a trustee to manage the funds (this can be a family member, a trusted friend, or a professional).

3. You specify how the money is to be used (for your funeral expenses).

4. Upon your death, the trustee uses the money to pay for your funeral according to your wishes.

Benefits of a funeral trust include:

• The money is protected and can only be used for your funeral.
• If properly structured, the money in the trust won't count as an asset for Medicaid eligibility.
• It relieves your family of the burden of paying for your funeral.

To set up a funeral trust, you'll need to work with a lawyer who specializes in estate planning. They can help you navigate the legal requirements and ensure the trust is properly structured.

Comparing Funeral Home Prices

Funeral costs can vary significantly between funeral homes, so it's important to shop around. Here are some tips:

• Get price lists from several funeral homes. Don't be afraid to ask for this information over the phone.

• Check if the funeral home is independent or part of a larger corporation. Corporate funeral homes may have higher prices.

• Ask about packages versus itemized services. Packages may be more convenient, but itemizing can help you see exactly what you're paying for.

• Don't feel pressured to buy the most expensive options. It's okay to stick to your budget.

• Ask about any additional fees that may not be included in the listed prices, such as transportation or crematorium fees.

Remember, the most expensive funeral home isn't necessarily the best, and the least expensive may not offer what you want. Look for a funeral home that you feel comfortable with and that offers the services you need at a price you can afford.

Tips for Managing Funeral Costs

Here are some additional tips for managing funeral costs:

• Consider a direct cremation or burial. These services skip the embalming and viewing, which can save a significant amount.

• Choose a less expensive casket. Caskets can range from a few hundred to several thousand dollars.

• Have a memorial service at home or in a community space instead of the funeral home.

• Limit the viewing to one day or have a closed casket.

• In lieu of flowers, ask for donations to a favorite charity.

• If using a funeral home, don't feel obligated to buy the casket, urn, or other products directly from them. You can often find these items at a lower cost elsewhere.

• Consider a green burial, which can be less expensive and more environmentally friendly.

Remember, a meaningful funeral isn't about how much you spend. It's about honoring your loved one and bringing comfort to those who are grieving.

Wrapping Things Up - Next Steps

Planning for funeral costs may not be a pleasant task, but it's an important one. By understanding the costs, comparing prices, and considering options like funeral trusts, you can make informed decisions and alleviate financial burdens on your loved ones.

Here are some next steps:

1. Start the conversation with your family. Let them know your wishes and plans.

2. Research funeral homes and get price lists. Don't be afraid to ask questions.

3. Consider setting up a funeral trust or dedicated savings account.

4. Look into any pre-arrangement plans or funeral insurance.

5. Keep your plans and any relevant paperwork in a safe place and make sure your family knows where to find it.

Remember, there's no one right way to plan a funeral. The most important thing is to do what feels right for you and your family, while also being mindful of your budget. With some planning and forethought, you can ensure your final wishes are carried out without undue financial stress on your loved ones.