To help relieve their families of some of these decisions, an increasing number of people are planning their own funerals, designating their funeral preferences, and sometimes even paying for them in advance. In fact, many elder law attorneys advise prepayment as a way to invest in assets that will not be countable by Medicaid or SSI and affect those benefits.
Following are some questions that the FTC recommends asking before signing up for a pre-need funeral arrangement. The questions are from the FTC’s Shopping for Funeral Services page.
- What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.
- What happens to the interest income on money that is prepaid and put into a trust account?
- Are you protected if the firm you dealt with goes out of business?
- Can you cancel the contract and get a full refund if you change your mind?
- What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred, but often at an added cost.
In addition, find out exactly what you are paying for and compare with other funeral providers. Sometimes it’s more convenient and less stressful to “price shop” funeral homes by telephone. The Funeral Rule requires funeral directors to provide price information over the phone to any caller who asks for it. And make sure the price is locked in and additional money won’t be required at the time of death.
These pitfalls can be avoided, of course, by making decisions about your arrangements in advance, but not paying for them in advance. Be sure to tell your family about the plans you’ve made; let them know where the documents are filed. If your family isn’t aware that you’ve made plans, your wishes may not be carried out. You may wish to consult an attorney at Kavesh, Minor & Otis on the best way to ensure that your wishes are followed.
Article Provided by www.elderlawanswers.com
