If you have ever had to make final arrangements for a loved one, you probably know exactly how expensive funerals can be. Indeed, according to World Population Review, the average funeral in Massachusetts currently costs more than $10,200. When you include other end-of-life expenses, you might pay as much as $28,000.
Leaving your loved ones to pay your final expenses might seem irresponsible. It also can be cruel, as your loved ones might have to go into debt when they are grieving your death. Among the many options likely available to you is a funeral trust.
What is a funeral trust?
A funeral trust works much like a savings account, as it holds your money until you die. Typically, funeral homes set up and manage these trusts. Therefore, if you are considering a funeral trust, you should interview funeral directors to find one that meets your needs.
What do funeral trusts cover?
Each funeral trust operates differently, so you should be certain to ask about the expenses the trust covers. Typically, though, funeral trusts pay for funeral expenses and other end-of-life costs. These can include the following:
- Your casket, burial plot, vault or urn
- Embalming or cremation
- Your funeral clothing
- The officiant
- Funeral transportation
- Obituary and death certificate expenses
Are there any downsides to funeral trusts?
Even though joining a funeral trust might put your mind at ease, there are some drawbacks to consider. For example, a funeral trust might have tax or public benefit implications. Likewise, if the funeral home goes under, you might lose your investment.
Ultimately, when you are planning your estate, it is advisable to discuss the pros and cons of funeral trusts with your estate planning attorney.