Over half of all Americans do not have an estate plan. People give numerous excuses for why they haven’t created one, including the simple fact that people don’t like to think about their own death. While understandable, if you don’t think about it now, your loved ones may be burdened with details at the time of your death that will add to their grief and that you could have handled wile alive, like funding your funeral. There are three easy ways you can do that right now, including:
- A pre-paid funeral plan—offered by many funeral homes, you may be able to pay them now and lock in today’s prices. You will also be able to select all the details of your service, ensuring that it will be what you want and taking the pressure off your loved ones. On the down side, the funeral home could go bankrupt, change hands, or go out of business, leaving your contract in limbo.
- Life insurance proceeds—you can designate a specific life insurance policy as “funeral costs”. Your family will have immediate access to the funds upon your death which eliminates the financial worries; however, they will still have to make numerous decisions at a time when they are grieving.
- Combining methods by creating a funeral trust—offering the most advantages, a funeral trust combines other methods. You can purchase a life insurance policy that names the trust as the beneficiary. The trust is then set up with all the details of your funeral and directed to pay out to the funeral home upon your death. Using this method can also provide asset sheltering and Medicaid advantages.
- How Will You Age in Place and Be Able to Die at Home? - August 16, 2020
- Beneficiary Designations and Other Non-Probate Transfers - August 15, 2020
- Leaving Assets Can Be Tricky – Part 3 - August 13, 2020