American Retired Seniors

Funerals are not a pleasant topic for many Americans; however, as the saying goes “Two things are for certain – death and taxes”. A lot of us address paying our taxes throughout our adult life, but some of us hesitate to dwell on dying. I buried both my parents and I can tell you from experience, making funeral arrangements can be a bit daunting and overwhelming in the middle of the grief process. However, that experience did get me motivated to focus on my own funeral needs, which has given me a great deal of peace which will help to reduce the stress on my son, when “that” day comes. Likewise millions of Americans are confronted with the same decision making process when it comes to them or burying a loved one. All too often these decisions are made under great emotional stress which sometimes tends to rapidly increase costs from funeral directors who attempt to cash in on this emotional time.

Planning in advance is a sensible and cost saving approach which can help in making informed and thoughtful decision, reduce costs by comparing prices offered by multiple funeral providers and will ensure the individuals final wishes are carried out, while also reducing family stress and emotional turmoil. One should see this as an extension of estate planning, i.e. wills, power of attorney, etc.

Burying the dead in America is one of the most expensive purchases individuals will make. Some estimates, and you hear it on TV, cost an average of $6,000. Just because you begin making those final plans, getting prices, etc. does not mean you have to begin paying for your funeral, and it
certainly does not mean you are closer to death! One should consider the option of establishing ‘pre-need’ funeral arrangements if you want to begin paying for those funeral expenses in advance.

So many decisions:
-Where to purchase the grave site? (if applicable) (don’t forget to visit before hand)
-Burial or cremation?
-Cemetery and grave location? (It is best to buy before you need one)
-Where to scatter the ashes, who will do this?
-Purchase the casket or urn from a funeral home or from a wholesaler?
-A service at a local place of worship or a graveside or both?
-Elaborate or simple?
-If burial – casket open or closed?
-Will there be a viewing or visitation?
-Will there be a need for embalming?
-If considering cremations, will there be immediate cremation or will there be a viewing, visitation and then cremation?
-Will there be flowers, limousines, obituary notices, acknowledgement cards, thank you cards (all add to the overall expense of the funeral?
-Will the funeral home accept the deceased life insurance to cover the expense?

Every family is different and ‘one size fits all’ will not work for everyone. Funerals and burying the deceased are greatly determined by cultural traditions, cost, religions traditions and personal preferences.

One sure rule of thumb: Do NOT “over-spend” on a funeral or burial just because you or your family has a sense that the expense will be seen as a reflection of their feelings for you. Guilt is not an option. I have seen families who were living on food stamps, upon a loved one’s death, go out and buy a $10,000 funeral plan in the heat of stressful emotion, only to have that debt linger on and on and on and on….

Simply because they believed the great expense demonstrated their love for the individual. HINT: Let your loved ones know beforehand that you love them, and then proceed to make sensible and responsible funeral plans.
Whatever your decisions, be sure to put your preferences in writing, give copies to family members, your attorney, your funeral director and keep a copy in a safe secure place, but not a safe deposit box, since access to the information may be needed during a holiday or over the weekend.

Funerals are actually regulated by the Federal Trade Commission and most states have Funeral/Burial ordinances. Thus, funeral directors are required to provide itemized prices and the goods and services offering. They are also required to provide this information to you in person, or over the phone. Many funeral directors offer ‘package’ deals’, some are good some may be more than what is needed. Remember, you have the right to ‘pick and choose’ exactly what you want. The general FTC Rules:

You have the right to choose the funeral goods and services you want (with some exceptions).
The funeral provider must state this right in writing on the general price list.
If state or local law requires you to buy any particular item, the funeral provider must disclose it on the price list, with a reference to the specific law.
The funeral provider may not refuse, or charge a fee, to handle a casket you bought elsewhere.
A funeral provider that offers cremations must make alternative containers available.

A gentleman, fresh out of gift ideas, bought his mother-in- law a large plot in an expensive cemetery. On her next birthday, he bought her nothing.
She was quick to comment, loud and long, on his thoughtlessness. The gentleman said only one thing – “Well, you haven’t used the gift I gave you last year.”

Specifically about Pre-Need Arrangements:
Americans need to ensure the funeral companies they are considering are reputable. In the past few years, horror stories have been made public about individuals paying for the pre-need and then the funeral homes have gone out of business, leaving the public with no recourse.
Most funeral homes are reputable however be wary when it comes to pre-need policies as some funeral policies, in the last couple of years, have been fraudulently spent by unscrupulous funeral directors. This is the exception, rather than the rule. However, in the past 2 decades, many smaller and private funeral homes has been purchased by huge conglomerates who have increased rates and taken the personal aspect of funeral arrangements out of small town America. The only federal agency that has jurisdiction over pre-need funeral policies is the Federal Trade Commission but they have done very little to protect Americans regarding pre-need funeral regulations.

The Funeral Consumers Alliance advise against pre-need contracts in most cases. Instead they suggest Americans consider depositing money in a separate interest-bearing account at your local bank. On your death, the person you name as the beneficiary of this “pay on death” account (also called a POD account or Totten trust) has immediate access to the money. Just be sure to name a trusted relative or friend, not a not a funeral home, as the beneficiary.

What you should consider when considering pre-need arrangements:
What are you are paying for?

Are you buying only merchandise, like a casket and vault, or are you purchasing funeral services as well?

What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.

What happens to the interest income on money that is prepaid and put into a trust account?
Are you protected if the firm you dealt with goes out of business?

Can you cancel the contract and get a full refund if you change your mind?

What happens if you move to a different area or die while away from home?

Some prepaid funeral plans can be transferred, but often at an added cost
Check the fine print -some pre-need policies have exclusions

Be certain your pre-need policy can be transferred to another funeral home, or the funds can be transferred back to you, in case you move or change your mind.

Ask where the pre-need payments are being invested, who will be holding the funds?
If the funeral home changes ownership, or a specific casket or urn is no longer available, what are your options?
If you are close to being eligible for Medicaid, you can put some of your money into an “irrevocable” pre-need funeral plan as a way of spending down your assets

Most important of all, it is best to have an attorney or trusted advisor review any pre-need contract before you sign.

An example of the type of price list one may encounter when planning for funerals:

Basic Services of Funeral Director and Staff – $2500.00
Adult Caskets – $395.00-$6000.00
Outer burial container – $770.00-$7100.00
Rental Casket for Cremation (for viewing or visitation) – $1275.00
Transfer of Remains to Funeral Home – $440.00
Embalming – $900.00
Other preparation of the deceased (washing, dressing, etc.) – $375.00
Sanitary Care (disinfecting, placing body in casket) – $200.00
Funeral or Memorial Service at Funeral Home – $525.00
Graveside, Chapel, Mausoleum Service – $295.00
Evening Service, Sunday and Holiday Charge – $600.00
Funeral Hearse or Coach (within 50 miles) – $375.00
Limousine (each within 50 miles) – $300.00
Transport Service (taking remains to cemetery, mausoleum, chapel) – $300.00
Flower delivery vehicle (within 25 miles) – $95.00
Preparation Room (Use for Religious Services) – $845.00
Custom Printing (Setup and layout) – $100.00
Custom Stationery, Registry, Acknowledgement Cards – $895.00
Staff Organist at funeral home – $75.00
TOTAL OVERALL CHARGES = Over $25,000

Now this same Michigan funeral home offers a package deal with many of the items above, (less casket and burial container) for $6180.00

The point here is to do some comparison shopping, check out package deals which sometimes offer significantly reduced pricing over standard rates. Consider purchasing a casket from a wholesaler. Also, outer burial containers are not much needed in many parts of the country.

Information will be needed by the funeral home in order to prepare the death certificate, which is needed for conducting legal matters in behalf of the deceased. Therefore expect to provide:

-A recent photo of the deceased
-Discharge papers from military service (Form DD 214)
-Complete names of parents and children
-Deed to cemetery plot or mausoleum
-Biographical information
-Life Insurance policies

Should you have complaints about a funeral company, you should contact your state regulatory agency and you should also contact the Federal Trade Commission. Do your homework, verify, investigate, and check with the Better Business Bureau or other reputable agencies before deciding on any company or business for your funeral arrangements.
Helpful Resources:

Funeral Consumers Alliance (non-profit organization protecting consumer’s rights)
www.funerals.org

Check out the Federal Trade Commission’s website: www.ftc.gov/bcp/conline/pubs/services/funeral.htm

Council of Better Business Bureaus, Inc. Offers information about pre-need funeral arrangements: www.bbb.org/library/funeral.asp

The United States Department of Veterans Affairs offers burial information for American veterans: www.cem.va.gov. You may contact regional Veterans offices in your area by calling 1-800-827-1000.

Cremation Association of North America offers crematories, cremation and funeral homes that offer cremation:

www.cremationassociation.org

Jewish Funeral Directors of America offers serves the Jewish Community: www.jfda.org

National Funeral Directors and Morticians is an association primarily for African-American Communities: www.nfdma.com

AARP provides articles about funeral planning and pre-needs arrangements for free: www.aarp.org

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Filed under: Funeral Information