Reader questions prepaying funerals

While I agree completely with Attorney Gina Barry's recommendation we plan ahead for death to make it easier for the family (November PRIME), shouldn't her suggestion of preparing money to a funeral home have also included some cautions? What if people sign over their money without the aid of a professional like Attorney Barry? If we need to spend down money to become eligible for Medicaid or a similar program, then preparing a funeral is probably a wise move. Otherwise, shouldn't we consider opening a joint bank account with a trusted family member or consider opening a Totten trust at a bank naming a funeral director as a recipient? Both options allow us to keep full control of our money while we live, but make the money immediately available upon our death without going through probate. It's simple and something we can do on our own. In addition, the accruing interest should keep up with rising funeral costs. Isn't that basically all that funeral homes are doing with our money? If we still want to prepay a funeral home, shouldn't we be cautioned to know the answers to the following questions: Once we pay for our chosen funeral and the money goes into a trust or insurance policy, is that money still under our control or is it under the control of the funeral home? What happens if we move, die while traveling, or simply change our minds and now want a less expensive funeral? What money can we get back if we decide to cancel? Is our money earning interest? and at what rate? What expenses are not covered by the plan? Over 20 items on final funeral bills autopsy, obituary notices, flowers, grave openings, etc. are purchased from third parties and cannot be calculated in advance. What happens if we die before the plan is fully paid up? What happens if the funeral home merges with another or is sold outright? Most funeral homes are now owned by corporations. This is true even when some original family members are still involved. What happens if the funeral home goes out of business? Do creditors have a claim on your trust money? Do state laws protect you if your money is embezzled? Mom's was the first funeral I had to arrange. The best thing I did to plan ahead was to familiarize myself with the free or at-cost consumer education materials of the Funeral Consumers Alliance of Western Massachusetts (FCAWM). I learned a lot about funeral service options, consumer protection laws, and numerous ways to have a dignified yet affordable funeral. When Mom died in 2006, the FCAWM's funeral home price comparison survey helped me select a funeral director. I knew exactly what I wanted so arrangements were easily and quickly made without them trying to sell us any extras. Mom had identified a casket she liked at a local discount casket retailer. Since the casket had not been prepaid, we did have to wait an extra day for it to be ordered and delivered. Since 1994, federal law requires funeral directors to accept caskets from a third party without any penalty or charging a fee to the consumer. The whole think was a positive experience. We were happy with our Funeral Home, the services we purchased, and the quality of the services at a reasonable cost. FCAWM may be reached by writing to P.O. Box 994, Greenfield, MA 01302-0094; by calling 413-774-2320; or through www.FuneralConsumersWMass.org. Eileen Pratt Springfield