Comments on: Have You Really Planned For Everything? http://mondayhope.com/2009/06/have-you-really-planned-for-everything.html Christian, Competent, Caring Thu, 06 May 2010 02:46:02 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Greg Howard http://mondayhope.com/2009/06/have-you-really-planned-for-everything.html/comment-page-1#comment-104 Greg Howard Tue, 13 Oct 2009 14:57:59 +0000 http://mondayhope.gregrickaby.com/?p=224#comment-104 Pam, you raise a great point. Locking in a price with a funeral home can have some advantages, but there are also disadvantages, as well. At this time of economic uncertainty, there are always business risks with prepaid contracts. It is a generally safe bet that a funeral home will be in business for a long time to come, as this is one of those services that is always going to be needed. However, many are small businesses which are subject to the risks of occasional mismanagement, family does not take over business if parents decide to move on or retire, etc. Locking in with a funeral home also bears a geographic risk. No one can see into the future all the time with enough clarity to know they may not move to another area to be closer to children, etc. The advantages of a funeral trust can take care of some of these concerns. First, funeral trusts are a life insurance product. They also provide growth of the amount in the trust in the form of interest or dividend. As a life insurance product, this growth is generally tax free within the trust. Also, as pointed out, this does not have to go through probate. Also, should your plans change or costs reduce, i.e., elect cremation versus burial, downscale in plans, deflation of prices or any other reason, any funds left over are left to your designated beneficiaries. I thank you for taking the time to read the article and to post a thoughtful comment about the ramifications of such a funeral trust. I look forward to possibly answering more questions should you have them. Pam, you raise a great point. Locking in a price with a funeral home can have some advantages, but there are also disadvantages, as well. At this time of economic uncertainty, there are always business risks with prepaid contracts. It is a generally safe bet that a funeral home will be in business for a long time to come, as this is one of those services that is always going to be needed. However, many are small businesses which are subject to the risks of occasional mismanagement, family does not take over business if parents decide to move on or retire, etc.

Locking in with a funeral home also bears a geographic risk. No one can see into the future all the time with enough clarity to know they may not move to another area to be closer to children, etc.

The advantages of a funeral trust can take care of some of these concerns.

First, funeral trusts are a life insurance product. They also provide growth of the amount in the trust in the form of interest or dividend. As a life insurance product, this growth is generally tax free within the trust. Also, as pointed out, this does not have to go through probate.

Also, should your plans change or costs reduce, i.e., elect cremation versus burial, downscale in plans, deflation of prices or any other reason, any funds left over are left to your designated beneficiaries.

I thank you for taking the time to read the article and to post a thoughtful comment about the ramifications of such a funeral trust. I look forward to possibly answering more questions should you have them.

]]> By: Pam http://mondayhope.com/2009/06/have-you-really-planned-for-everything.html/comment-page-1#comment-103 Pam Mon, 12 Oct 2009 21:24:13 +0000 http://mondayhope.gregrickaby.com/?p=224#comment-103 The only thing with this plan is I don't see it locking in the price of your funeral at the funeral home. Price continue to rise every year and setting an amount aside, if you live long enough the dollar amount you planned may not cover the cost of your funeral. The only thing with this plan is I don’t see it locking in the price of your funeral
at the funeral home. Price continue to rise every year and setting an amount aside, if you live long enough the dollar amount you planned may not cover the cost of your funeral.

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