If you do not want to burden your close friends and relatives, you are probably thinking about including funeral arrangements in your estate plan. Fortunately, from how the service unfolds to where your remains end up, you can take care of virtually all end-of-life matters.
When you are picking out a cremation service or burial plot, someone from the funeral home may ask you whether you want to participate in a funeral trust. These trusts, which funeral homes typically set up, pay for covered funeral expenses.
As you probably know, funerals and other end-of-life matters can be expensive. In fact, according to the Zebra, you can plan to spend nearly $7,000 for a funeral with cremation or almost $8,00 for one that includes an in-the-ground burial at a cemetery.
Each funeral trust is different, so you want to be sure you understand exactly what yours covers. Generally, though, these trusts pay for funerals and most other end-of-life expenses, often including the following:
- The venue and officiant
- The casket or urn and burial vault
- The food, refreshments and flowers
- The burial plot
- Your clothing
- Other similar expenses
Estate planning considerations
Before you agree to participate in a funeral trust, you should verify that the funeral home is a reputable one. You also should consider the implications of joining the trust. Indeed, there may be some tax or public benefits consequences for you or your estate.
Ultimately, because it can be difficult to know exactly how a funeral trust might affect your overall estate plan, it is important to have competent counsel when making your arrangements.