People at the estate planning table may wish to determine who inherits their property or who has authority if they should fall ill. Many people do not think to determine who pays for their funeral. Grieving loved ones do not typically have a savings account ready to cover the high costs of these services.
Understanding the costs and ways to pay them may help those wondering how to pay for these in advance. Having the costs paid down ahead of time may help ease the stress on those loved ones left behind.
The costs of a funeral service
The National Funeral Directors Association estimates that states in the South Atlantic region like Maryland may expect to pay a median cost of $7,070 to $7,800 for funeral services. These services include mandatory basic fees and preparation but the total may shift depending on whether a family decides on embalming, burial or cremation.
The ease of a funeral trust
As FuneralWise discusses, there are many options for paying a funeral’s cost. Payment on death accounts, or Totten Trusts are savings in the bank that designated a beneficiary. Upon a person’s death that beneficiary receives it for funeral payments. A preneed contract with the funeral home is another way to open a trust designed to save up money for these costs.
Each of these agreements has nuance and complications that may seem intimidating to navigate. However, with the right information and resources, anyone has the ability to make the preparations for the costs of their funeral.