No one wants to spend time thinking about how to handle matters of their own death. However, it is crucial to consider these often high price things, or else the burden of figuring them out will fall to your loved ones instead.
Funeral costs make up one of these unpleasant and yet necessary things that you should take care of. But exactly how do you plan for funeral costs?
Knowing the costs
First, you can plan by understanding exactly how much the average funeral will cost in the first place. The National Funeral Directors Association discusses the high cost of funerals, which can often reach between $5,000 and $10,000. Generally speaking, cremations cost about half the price of burials, though the prices will differ depending on each funeral home’s service costs.
Using a trust
You can use funeral pre needs, trusts and savings accounts in order to help save up for these expenses. A revocable trust, for example, lets you tuck away money for this event while also leaving you with a level of control in case you need to make changes.
If you choose an irrevocable trust, the money goes directly to your executor, though. This ensures that the money in the trust will only get used for its intended purpose, which is a good option if you have trouble managing money that you have easy access to.
Funeral pre needs
If you have a pre-needs arrangement with a funeral home, this is also helpful. Simply put, this allows you to pay for your funeral arrangements far in advance, well before your death. Thus, it is one less worry for anyone to concern themselves with.