Trusts, Estates and Succession

Part 7 – Planning Your Own Funeral

Pre-planning your funeral is not morbid.  It is being thoughtful and considerate of the loved ones you will leave behind.  It gives you control in selecting what you want and relieves your family of the burden of making decisions in a time of mourning.  Many people feel that funeral planning is an extension of estate planning and putting one’s affairs in order. 

Funeral Planning Tips

Thinking ahead allows you to compare prices and evaluate what you want and perhaps need for cultural/religious reasons.  It can help you make informed and thoughtful decisions about funeral arrangements.

An important consideration when planning a funeral pre-need is where the remains will be buried, entombed, or scattered. In the short time between the death and burial of a loved one, many family members find themselves rushing to buy a cemetery plot or grave — often without careful thought or a personal visit to the site. That’s why it’s in the family’s best interest to buy cemetery plots or places of interment before they are needed.

Arrangements can be made in advance, but not pre-paid.  This will enable your wishes to be documented, but the price quoted may rise over time.  Further, businesses may close or change ownership.  So, just as you should review your estate planning documents periodically, you may wish to review your funeral arrangements from time to time. 

Put your preferences in writing, give copies to family members and your attorney, and keep a copy in a handy place. Don’t designate your preferences in your will as a will often is not found or read until after the funeral. And, avoid putting the only copy of your preferences in a safe deposit box. Your family may have to make arrangements on a weekend or holiday before the box can be opened.  In many states like New Jersey, a letter of last instruction can be prepared with the assistance of an attorney to set forth your wishes. 

Prepaying

Many, many Americans have entered into contracts to arrange their funerals and prepay some or all of the expenses involved. Laws of individual states govern the prepayment of funeral goods and services.  Many states have laws to help ensure that these advance payments are available to pay for the funeral products and services when they’re needed. But the protections vary widely from state to state and there are some state whose laws offer little or no effective protection. Some state laws require the funeral home or cemetery to place a percentage of the prepayment in a state-regulated trust or to purchase a life insurance policy with the death benefits assigned to the funeral home or cemetery.

In New Jersey, there is a program called New Jersey Choices, into which the prepayments are placed until needed.  The funds deposited earn interest while on deposit and when needed, the funeral home can request payment.  This protects the monies deposited should a funeral home go out of business, as the funeral home does not hold the monies. 

Pennsylvania is slightly different in that the funeral director must deposit the funds into a bank account separate from their personal or business accounts. 

Wherever you live, you should check with the funeral director, or a couple directors, as to the law in effect for your state. 

If you’re thinking about prepaying for funeral goods and services, it’s important to consider these issues before putting down any money:

• 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 interest income on money that is prepaid and put into a trust account?
• Are you protected if the funeral home 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.

Be sure to tell your family about the plans you’ve made; let them know where the documents are filed. If your family isn’t aware that you’ve made plans, your wishes may not be carried out. And, if family members don’t know that you’ve prepaid the funeral costs, they could end up paying for the same arrangements. Check with your estate planning attorney as to the  most effective way to ensure that your wishes are followed.

I hope that you have learned some do’s and don’t’s from this multi-part series of blogs.  I know that it is not the most pleasant matter to address, but one that is a very important matter.

Part 6 – Interment Options

We have been talking about funeral arrangements in prior segments and now we will look at Interment options.  It may be a cemetery, a mausoleum crypt, keeping cremains in the possession of the family or disposal of cremains in an alternative manner.  Your preferences are just as important, if not more so than the funeral. 

Cemetery Interment

The burial of a body in a cemetery has been a long-time practice through many generations and in many cultures.  There may be a family plot where several family members can be interred or it may be necessary to purchase a plot.  When you buy a cemetery plot, the cost is not the only consideration. The location of the cemetery and whether it meets the requirements of your family’s religion are important, as well.  There may be restrictions the cemetery places on burial vaults purchased elsewhere, the type of monuments or memorials it allows, and whether flowers or other remembrances may be placed on graves.

Let’s not overlook the cost. Cemetery plots can be expensive. Keep in mind that there may be the requirement of a grave liner or burial vault, the cost of opening and closing the grave and perhaps a cost for perpetual care. 

If the deceased is a veteran, a free burial in a national cemetery and a grave marker may be available. Eligibility also extends to some civilians who have provided military-related service and some Public Health Service personnel. Spouses and dependent children are also entitled to a plot and marker when buried in a national cemetery. There are no charges for opening or closing the grave, for a vault or liner, or for setting the marker in a national cemetery. The family generally is responsible for other expenses, including transportation to the cemetery. For more information, visit the Department of Veterans Affairs.

There are also established veterans cemeteries in many states. Eligibility requirements and other details vary. Contact your state for more information.  If you respond to an ad for “veterans’ specials” by a commercial cemetery, buyer beware. These cemeteries sometimes offer a free plot for the veteran, but charge exorbitant rates for an adjoining plot for the spouse, as well as high fees for opening and closing each grave.

Interment of Cremains

If your loved one has been cremated, the cremains can be interred in a cemetery or may be buried in a mausoleum or columbarium.  If this option is selected, you can expect to purchase a crypt and pay opening and closing fees, as well as charges for endowment care and other services. The FTC’s Funeral Rule does not cover cemeteries and mausoleums unless they sell both funeral goods and funeral services.

Some people have desires for their cremains to be scattered in a favorite location or perhaps to be divided among family members.  This is a matter of personal preference.  However, if the cremains are to be scattered, be aware that there are regulations in this regard and you don’t want to cause problems.

Our final segment will be Part 7, which will discuss the advance planning of your funeral.

Part 5 – Funeral Pricing

In our world, when thinking of making a major purchase, we often times will shop around for the best prices, to find the item we like best, etc.  Funerals should be no different except that if you are faced with making decisions unexpectedly, just as you would be if the HVAC broke in your home, you might make spontaneous decisions.  This is one of the major advantages of pre-planning your funeral. 

The following is a list of some things to consider when thinking about certain details which will impact the total cost of a funeral.

• Disposition of remains will be immediate burial or immediate cremation?  If cremation, cost of cremation.
• Is the body being donated to a medical school or hospital?  If so, what are the arrangements for the donation?
• Basic services for the funeral director and staff include:
  • Pickup of deceased
  • Embalming
  • Other preparation of body (makeup, hair, nails, etc.)
  • Visitation/viewing – staff and facilities (funeral home, other location)
  • Funeral or memorial service – staff and facilities
  • Graveside service – staff and equipment (hearse, other vehicles)
  • Transportation of body from/to another funeral home
• Other Expenses such as visitor book, memorial cards, thank you notes, obituary costs, etc.
• Casket or container for cremains
• Burial Vault/Grave Liner
• Cemetery Charges, including cost of lot or crypt?  Will there be perpetual care costs, what will be the cost of opening and closing, cost of marker or monument?

Every family is different, and not everyone wants the same type of funeral. Funeral practices are influenced by religious and cultural traditions, costs, and personal preferences. These factors help determine whether the funeral will be elaborate or simple, public or private, religious or secular, and where it will be held. They also influence whether the body will be present at the funeral, if there will be a viewing or visitation, and if so, whether the casket will be open or closed, and whether the remains will be buried or cremated.

Part 6 will discuss Interment Options.

In the previous blog, we discussed the two largest costs in a funeral service – embalming and caskets.  This segment will provide a little insight into caskets so you will be better informed.

Part 4 – Burial Vessels

Caskets

When visiting a funeral home or showroom to shop for a casket, the Funeral Rule requires the funeral director to show you a list of caskets the company sells, with descriptions and prices, before showing you the caskets. Industry studies show that the average casket shopper buys one of the first three models shown, generally the middle-priced of the three.

While it may not be in your best interest, unless otherwise requested, you may be shown the higher-end models first.  Request to see the lower-priced models first, not being surprised if they are not on display with the majority of caskets or on display at all.

It used to be that caskets were only purchased through a funeral home, but now there are other options available – the internet being the biggest source or a casket showroom. The Funeral Rule requires funeral homes to agree to use a casket you bought elsewhere and doesn’t allow them to charge you a fee for using it.

The purpose of a casket is to provide a manner to move the body before burial or cremation.  The casket will not preserve the body forever, regardless of its cost.  If a metal casket is selected, it may have a gasket or a seal which is designed to delay moisture from seeping into the casket and to prevent rust.  The Funeral Rule forbids claims that these features help preserve the remains indefinitely as such claims are false.

Metal caskets are made from rolled steel of different gauges of thickness.  Some come with a warranty.  Wooden caskets – made of mahogany, cherry, oak or pine — do not have gaskets and do not have a longevity warranty.  Both wooden and metal caskets usually offer warranties for workmanship and materials. 

Cremation

If cremation has been chosen and there will be visitation, it is possible to rent a casket from the funeral home.  If direct cremation is chosen without a viewing or ceremony where the body is present, a casket is not necessary and an alternative container can be used.  Containers to hold the cremains are available for purchase on the internet and do not have to be of a traditional nature.

Under the Funeral Rule, funeral directors who offer direct cremations cannot tell you that a casket is required by law and they must provide in writing your right to buy an unfinished wooden box or alternative container making the same available for direct cremations.

Burial Vaults or Grave Liners

A burial vault or grave liner is placed in the ground before burial, and the casket is lowered into it at burial. The purpose is to prevent the ground from caving in as the casket deteriorates over time. A grave liner is made of reinforced concrete and will satisfy any cemetery requirement. A grave liner only covers the top and sides of the casket while a burial vault is more substantial and expensive than a grave liner. It surrounds the casket in concrete or another material and may be sold with a warranty of protective strength.

State laws do not require a vault or liner and funeral providers may not tell you otherwise. However, it may be a requirement of the cemetery.  Please remember that neither grave liners nor burial vaults are designed to prevent the eventual decomposition of human remains. It is illegal for funeral providers to claim that a vault will keep water, dirt, or other debris from penetrating into the casket if that’s not true.

The Funeral Rule prohibits funeral providers from telling you either embalming or a particular type of casket will preserve the body of the deceased for an unlimited time.

The next article – Part 5 – will discuss funeral pricing.

The IRS has issued instructions for the return of stimulus checks sent to individuals who are ineligible or deceased.  The following is a reprint from the IRS website instructing how the checks should be handled:

If the payment was a paper check:

1.  Write “VOID” in the endorsement section on the back of the check.
2.  Mail the voided Treasury check immediately to the appropriate IRS location. 

For NEW JERSEY individuals, the check should be mailed to: 

Kansas City Refund Inquiry Unit
333 W Pershing Rd
Mail Stop 6800, N-2
Kansas City, MO 64108

For PENNSYLVANIA individuals, the check should be mailed to: 

Philadelphia Refund Inquiry Unit
2970 Market St
DP 3-L08-151
Philadelphia, PA 19104

• Don’t staple, bend, or paper clip the check.
• Insert a note stating why you are returning the check, such as Individual deceased and note the date of death.  Make certain to include your name and title (executor, administrator, etc.) and address. 

If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

1. Submit a personal or estate check, money order, etc., immediately to the appropriate IRS location (using proper address listed above).
2. Issue the check or money order payable to “U.S. Treasury” and write 2020EIP and the taxpayer identification number (social security number or estate ID number) of the individual who received the check.
3. Insert a note stating why you are returning the check, such as Individual deceased and note the date of death.  Make certain to include your name and title (executor, administrator, etc.) and address. 

It is recommended that you retain a copy of the mailing to the IRS and sending the same by certified mail is never a bad idea.