If you have ever had to plan a loved one’s funeral, you undoubtedly remember just how expensive final arrangements can be. Indeed, according to World Population Review, the average cost of a funeral in California is nearly $12,000. When you include the cost of other end-of-life matters, dying is likely to set you back more than $32,000.
Asking your loved ones to pay for your funeral probably seems unfair, especially when they are grieving your death. Luckily, you can use your estate plan to set aside funds for your final expenses. You even might want to think about joining a funeral trust.
Unlike other types of trusts you might encounter when planning your estate, funeral trusts are more like savings accounts. That is, with a funeral trust, you give a funeral home money to hold in a pooled trust. When you die, the funeral home uses funds in the trust to pay for your casket, burial plot, funeral and other end-of-life expenses.
There are some clear-cut advantages to joining a funeral trust. Arguably, the most significant one is locking in the price of your funeral in today’s dollars. If funeral costs rise before your death, you do not have to pay elevated prices.
Moreover, a funeral trust allows you to pick the funeral home and services you want. This can give you control over your celebration of life, especially if your loved ones have different wishes. Likewise, you do not have to rely on your friends and relatives to pay for your funeral.
Ultimately, because any funeral trust is likely to have some drawbacks, it is important to understand all your options before deciding to join one.