Estate planning often revolves around the aftermath of your death, which is vital when it comes to making sure your wealth and property go to who you want. But that makes it easy to overlook the many options you have for putting aside some of that wealth to planning your funeral.
This has a number of benefits, namely getting it out of the way, but having a plan and even savings for your funeral might relieve some of the pressure while your loved ones grieve.
The price for your funeral varies depending on a lot of different factors including body prep, services and whether you choose burial or cremation. According to the National Funeral Directors Association, the median cost of a funeral in 2019 was $9,135 for a funeral with a viewing and burial and $5,150 for a viewing and cremation.
There are various ways to prepare for these costs to avoid stacking more stress on your grieving loved ones, including savings accounts, trusts or funeral pre needs.
Revocable trusts let you put the money away while maintaining a certain level of control over things. But an irrevocable trust puts the funds in the hands of the executor of the trust instead of you. That way any money in that trust goes specifically to what the trust agreement specifies.
Pre needs are agreements with the funeral home that specify your funeral services that you pay for in advance.
Each has its strengths and the nuances involved may seem complicated depending on how you want to plan for your funeral. It is important to communicate with your family and lean on your estate planning resources when making these big decisions.