Nicholas Flamel and the Prepaid Funeral

I recently recommended to a client that he prepay his and his wife's funeral.  Not just preplan, but prepay. I was met with great resistance to this idea. Often, as in this case, the resistance generally boils down to one of two issues:

1. prepaying for my funeral is not good financial sense

2. I am not going to preplan my funeral, that's morbid!

Both may be true. However a prepaid funeral plan should still be considered, and even if one decides not to prepay, a preplanned funeral should still be considered.  

First of all, as to the morbidity of the thing, we all must understand and accept that for the last several millennia, everything that was born eventually dies.  I know this is news to everyone, but it's true.  Even Nicholas Flamel, who famously created the the Elixir of Life (a potion that prevented death as long as one continued taking it) in Harry Potter, ends up dying.  As I recall, when Flamel decided to stop taking the elixir of life, he took enough to prepay and preplan his funeral.  (This clearly was what Dumbledore meant when he said Flamel took enough of the elixir to “get his affairs in order.”)

Anyway, a preplanned funeral can be a gift to those who you leave behind, because it saves them the guesswork of what you would have wanted.  A prepaid funeral allows them to not have to worry where the funds are going to come from.  It also allows you to do this planning in a time of relatively low stress, as opposed to the time of high stress immediately after a spouse or parent has died.  Funerals can be expensive, and buying one when under stress may lead to impulsive purchases, and excess spending.  It will even allow you to shop around.  With a married couple's funerals often costing as much as a new car,  shopping around may be a good idea.

The question of whether it is a sound financial decision for you to prepay a funeral is a question that must be answered on a case by case basis.  When spending down to qualify for Medicaid, it is typically a good idea. For some, it is better to have the funds invested and earning some financial return.

There are some resources available if you are considering a prepaid funeral. The Funeral Consumers Alliance is that sells an end-of-life planning kit, "Before I Go: You Should Know." The Consumer’s Alliance is a a nonprofit, educational organization.  The International Cemetery and Funeral Association website has additional information and Federal Trade Commission offers publications that can help when planning a funeral: "Funerals: A Consumer Guide." And "Paying Final Respects: Your Rights When Buying Funeral Goods and Services."

You also can call us if you have other questions.

 

Comments

[Josh Slocum]

Thanks for bringing this important topic up, Todd. As the executive director of Funeral Consumers Alliance, however, I must strenuously disagree with the notion that prepaid (note, I'm talking only about prepaying, not planning) make good sense. They usually don't. In Ohio you lose 10 percent of what you prepaid on a "guaranteed price" funeral if you change your mind and cancel. In addition, the deposit/refund provisions for *cemetery* purchases are just dire.

As someone who works with consumers around the country on this issue every day, I can tell you the false "peace of mind" prepaid funerals give can be anything but a gift to survivors. Instead of actually teaching kids how to shop for funeral, how to pick what they want and can afford, those who prepay think they can magically "take care of everything" by giving the money to to the mortuary. If mom dies out of state, if the funeral plans become impractical, the kids are an utter mess because, oh no, it's not "all taken care of."

Planning ahead is wonderful and crucial. But there's no need to give your money to a funeral home ahead of time unless (and this is the minority of cases) you need to spend down assets for imminent Medicaid eligibility. The problems with prepaid funerals are so extensive I devoted a whole chapter of my book "Final Rights" to the subject. I realize they can seem appealing, but respectfully, too few attorneys have the depth of experience we do in this topic and they're not aware of the pitfalls.

If you're interested in a pdf of that chapter, and of the Ohio-specific legal chapter, please email me.

Josh Slocum
Exec. Director
Funeral Consumers Alliance

[Todd Bartimole]

Josh, thanks for your perspective.

I have enjoyed looking at your website and appreciate the work you do. Many of my clients are spending down for Medicaid, and therefore would fit into the "minority of cases" you reference.

On the other hand, I recently met with a couple, for instance, who are in their mid-60's and have no apparent health issues, and own long term care insurance. For this couple, pre-planning perfectly addresses their needs, and gives them the flexibility they need without parting with their assets before it is necessary.

I hope my readers will visit your site to get more information.

Todd