People who purchase funeral prepayment plans through funeral homes like Naples Funeral Home Inc do so because they want to lessen the emotional and financial burden on friends and family members mourning their passing. However, although you may have a plan that you paid for in full, there may still be a few fees your loved ones will have to pay when it comes time to bury you. Here's what you need to know about this issue.
Some Future Services Not Included
When you bought your pre-planned funeral plan, you may have assumed everything necessary for your burial was included with the cost. This is not necessarily true, however. State laws may prohibit certain fees from being included, and some services may require special handling.
For instance, shortly after a Missouri man paid off his $10,000 prepaid plan, he was notified by the funeral home that the internment fee was not included in his plan. This fee pays for workers to dig the hole in the ground and put the casket inside. The funeral home later explained that the law required this service to be funded separately because it won't be provided until the future.
Taxes for the products and services used for your funeral are another expense your loved ones may have to pay for. The funeral home can't collect taxes for the products and services you selected in your plan until those items are actually purchased, which won't happen until you are deceased. Thus, your friends and family could be hit with a sales tax bill during a time when they just want to grieve.
It's critical to discuss exactly what your prepaid funeral plan covers and what, if any, leftover fees may still be due once you actually pass away to avoid unpleasant surprises.
Preparing for the Future
As noted previously, some costs can't actually be paid for until you pass away. Thus, it's important to set aside money to cover additional fees that may come due. One option is to put the money in an interest-bearing account. You can either use the interest earned to supplement your lifestyle or leave in the account to pay for any other unexpected expenses that may crop up.
Another option is to increase the amount of your life insurance policy to cover the additionally expenses. This way, your loved one won't have to dip into his or her inheritance to cover the additional cost.
Whichever option you choose, be sure to update your estate plan with information about the extra money and what it should be used for to ensure it goes where you want it.
For more information about prepaid plans or assistance selecting the best options for you, contact a funeral director.