When you start your estate planning process, it might feel difficult to think about the end of your life. But by arranging for your funeral expenses, you may spare your loved ones the unnecessary stress of finding and paying for those services while they grieve.
There are several ways to put money aside to use for funeral services and it is important to choose the method that works best for you and your estate. One method is the funeral home preneed alongside a funeral trust.
What is a preneed?
A preneed is an arrangement with a funeral home where you discuss all the details of your burial and potential services. The funeral director helps you see the kinds of caskets, plots and options you have all the way from visitation to the burial — or whether you choose a burial service at all.
If you choose to make a preneed contract with the funeral home, you need to pay for the services somehow. As Funeralwise details, you may create a funeral trust account in tandem with this contract to put away money for the funeral services.
What is a funeral trust?
A qualified funeral trust is a financial vehicle designed to help you set aside money for the estimated cost of your funeral and the agreement comes with all the details as to how to spend the money.
The types of trusts and the details of these agreements depend on your unique case. When planning for your future, it is important to communicate with your loved ones and lean on any resources to make your wishes — and the way your money works to fulfill those wishes — clear.