What Is Pre-Planning A Funeral, And How Does It Work?
What Is A Pre Planning Funeral Plan?
When it comes to funeral planning, pre-planned funerals are increasingly popular among the masses in the United States. A pre-planned funeral service is one that has been paid before much before the actual death has taken place. This plan offers people the convenience of planning their funeral ceremony much before they have passed, ensuring that their loved ones do not have to go through the trouble of planning a funeral and bearing the expenses in their time of turmoil and grief. Typically ranging between $10,000 and $25,000, costs pertaining to pre-planning funeral arrangements are usually paid to funeral homes in monthly installments.
Costs And Expenses Pertaining To A Pre Planned Funeral
Now that we have shed light on what pre-planning is, you may be wondering just how much such a funeral costs. As mentioned above, these plans typically range between $10,000 and $25,000, with funeral homes offering customers the option of paying the same either as a one-time upfront payment or in a staggered manner – over three years, five years, or even ten years. In addition to the cost of the actual plan, customers may also be expected to pay for certain other costs, such as administration fees (that may be as much as $100 to $200) and annual maintenance fees ($50 to $100 per annum).
Are Pre Planned Funerals Tax Deductible?
When it comes to funeral planning, many people wonder if the costs pertaining to the same are tax deductible. While in most cases, costs pertaining to funeral expenses are not eligible for tax deductions, this changes when in the case of an estate paying for the burial. As per the IRS, if in case the estate is bearing the cost of the funeral, as is in the case of a pre-planned funeral, the estate can then opt to claim the expenses against its taxes in the form of a deduction. However, it is prudent to always consult a certified tax professional before claiming any form of tax deduction.
Planning A DIY Funeral Or Memorial Service
A funeral or memorial service at a funeral home location isn’t the only option. In recent years, more and more families have opted for funerals at a more intimate location and in a ceremony of their own design. These funerals and memorial services are commonly known as “Do-It-Yourself,” or DIY. Titan Casket offers a guide on how to DIY a funeral or memorial service.
What Expenses Are Covered In A Pre Planned Funeral?
Basically, by pre-planning funeral arrangements, you can choose to include all expenses that you wish to include in your own funeral service. This can consist of expenses pertaining to the funeral caskets, flower arrangements, funeral transportation, and so on. Once you have created an exhaustive list of all the items you wish to include in your funeral service, the funeral home director will assess the same and give you a quote on the total price.
Here, you must note that when it comes to funeral pre-planning, you can opt for a guaranteed plan that lists down the complete checklist of all goods and services opted for. This price is then locked in and will not change even in the future.
Questions To Factor In When Considering A Pre Planned Funeral
Before you consider opting for funeral pre-planning, you must take note of and consider the following questions:
- Are the payments you will have to make reasonable?
- How much time will it take you to pay off the policy?
- What will happen if you pass away before the policy has been paid off in full?
- What will happen to your funeral arrangements if the funeral home goes out of business?
- What will happen to your funeral ceremony if the costs pertaining to the same go up before your demise?
- What will happen to the interest earned on your payments?
- Is there a possibility of canceling your plan if you change your mind? In such a case, will you get a refund?
- If in case there is money left in the corpus post-funeral, who stands to receive that money?
Suppose you are looking at options for funeral pre-planning. In that case, Titan Casket offers you the opportunity of casket pre-planning, with the benefits of locking-in current prices and ensuring your wishes are respected while saving as much as 50% or more on your casket.
Casket Pre Planning Made Easy
We'll help you purchase your pre-plan. You'll lock in today's price, ensure that your wishes are respected, and remove this financial responsibility from your family.