Pay for Funeral Expenses

Paying for your funeral expenses or for those of a loved one can be costly. Through proper research and preparation, however, you can learn your rights as a consumer and familiarize yourself with the process and necessary expenses. This, in turn, can help make the process go much more smoothly and will prove to be very cost effective as well.

Steps

Planning Ahead

1. Understand the cost. The average funeral costs $7,755 according to The National Funeral Directors Association. For some this is not much but for others it is a number they cannot hope to reach. This number is also a pay upfront proposition, as funeral homes will no longer accept payment plans. So when you are thinking about planning ahead, know that this is the number you need to target.
   • You should be able to get a very simple, basic funeral done for approximately $3,000 in many parts of the United States. So the less frills, the more affordable it is.
   • Consider cremation as a basic direct cremation costs approximately $1,000.
   • You'll also need to consider the work that goes into the creation of your cremation jewelry.
2. Consider pre-planning your funeral needs. Making funeral decision arrangements while not in a time of emotional distress will allow you to make more level-headed choices in regards to necessary funeral items such as caskets, outer burial chambers, and more.
3. Receive full disclosure on estimated costs. This includes an itemized breakdown of every line item for both funeral home costs as well as outside vendor expenses that are being billed through the funeral home establishment. These can include flowers, music, clergy honorarium, and newspaper notifications. Review all of these expenses to approve them before signing any contracts with the funeral home facility.
   • Keep this itemized list so that you and your loved ones can be sure to receive all that you have paid for.
4. Pay in advance. Preplanned funerals can often take advantage of this option and, generally, do so via installment payments. These can usually be made in any payment format, such as cash, money order, credit card or check.
   • Keep track of all receipts so the funeral isn’t paid for twice either by you, if you will be handling the end of life arrangements for another, or your family after you have passed on.
   • Be aware that funeral homes are a business. They may try to up-sell you on additional goods and services that are not strictly necessary. It’s best if your insurance company is one that takes care of and approves any additional expenses, as this cuts out the ‘’middle man’’ and eliminate these worries.
   • There will, invariably, also be additional last-minute charges tacked on so put aside an extra $1,000-2,000 in savings just in case.
5. Investigate death benefits. These will be part of the life insurance policy so you will need to speak to the insurance agent handling the policy on a regular basis to ensure that you have selected enough insurance to cover, or at least help to cover, the funeral expenses. This is applicable to both yourself and any family members for which you are responsible.
   • When you meet with the agent you can also discuss the payout procedure as well as the timing of it. This way you will have a better understanding of when life insurance policy money will be available to you of your family in order to make funeral payments.
   • At the time of passing, the funeral director will need to be provided the life insurance policy details and who to contact so that he/she can call the insurance company and confirm the policy’s active status, the total benefits, etc. Be certain not to sign away the entirety of the benefit but rather only the agreed upon good-faith estimate. The rest should go to you. This way you remain in control of the money and can approve or disapprove any additional costs.
   • Never disclose the total value of the life insurance policy to the funeral director or anyone at the funeral home. It’s none of their business.
6. Establish a Totten Trust. This you can do at your bank and guarantees that 100% of the money you put in remains in the trust earning interest for you. If you decide later to be cremated instead, you can withdraw all of your money without penalty. Should you or your loved one pass away, the deceased’s family controls the money in the trust, including any left over after funeral expenses are paid.
   • Be aware that the funeral director will attempt to lure you into purchasing their trust by offering a higher percentage yield on your money, perhaps several points more. The Totten Trust, however, will yield you more money in interest due to the myriad of rules associated with the funeral director’s trust AND will keep the money in your control at all times.
7. Avoid purchasing plans from funeral directors. While sold as peace-of-mind options to make end of life decisions easier for you, these are often filled with arcane rules that take advantage of every bit of leverage for the funeral director and the company he/she works for, not you.
   • Insurance policies purchased from a funeral director include restrictive fine print. They also add their own fees and premiums to the total, and in most cases they are turning around and purchasing a plan from another provider at a deep discount.
   • Don’t put your money in their trust-based prepayment plans. Most states only regulate a portion to be put in an interest-bearing account for you; the rest is put in an account to work for the funeral director. Add in exorbitant fees for canceling or cashing out the trust, administrative fees, and continuing payments that, if not made in strict adherence to the policy, can lock up the trust and result in more administrative fees for the funeral director, and you can see the litany of reasons why you need to avoid this type of account.

Paying for an Unsuspected Passing

1. Using the deceased’s estate. Many funeral homes, while not accepting payment terms, will negotiate in good faith for deferred payment if you can provide enough information to show them that they will undoubtedly get paid after probate proceedings conclude.
2. Split the costs among family. If a surprise passing leaves little to no money left for funeral expenses in the deceased’s estate, splitting the bills amongst family helps defray the costs so that no one person is left paying for the whole thing. Get together and plan the funeral so that the overall budget fits into each person’s share.
   • Since not everyone makes the same amount of money, you can weight the shares contributed so that those family members who can afford more pay more.
3. Throw a fundraiser. Oftentimes people belong to organizations or groups that provide support for one another in different ways. Artists, churches, businesses, and others will lend a hand to help raise money to defray the costs for things such as medical bills and funerals. With websites like Indiegogo and Kickstarter, there are easy ways to set up pages for those to donate what they can to help.
   • These usually take some time to set up and generate donations so you will have to rely on the deceased’s family, friends, and connections to spread the word quickly in order to raise the amount of money you need in a short period of time.
4. Call the deceased’s employer. The HR department will have all the information for benefits that were part of the deceased’s benefits package. If he/she was a member of a union they too may have benefits to help cover or defray funeral costs.
5. Look into accident or victim compensation. If the deceased was killed in an accident or a victim of a crime, you may be able to procure assistance.

Accessing Support Services

1. Check Social Security benefits. There is a one-time payment of $255 from the Social Security Administration if you are an eligible surviving spouse of someone receiving certain Social Security benefits that is meant to help pay for funeral costs. If there is no surviving spouse, the payment can made to a child who is eligible for benefits.
   • You will need the Social Security Administration notified as soon as possible when a person dies. Usually, your funeral director will report the death, but in order to do so, you will need to furnish the decedent's Social Security number to that director so the report can be made.
2. Visit the Funeral Consumers Alliance website to find information on payment assistance in your area. This site will offer you tips and vital information on what NOT to do when planning and/or committing to a funeral.
3. Request burial assistance. The National Cemetery Administration through the United States Department of Veterans Affairs can assist with burial in a national cemetery. There are some benefits available for veterans to be buried in a private cemetery as well.
4. Contact your local county treasurer's office. They may have assistance programs to help pick up the cost for a person who does not have the money for funeral expenses or if that person's relatives or friends are unwilling or are unable to pay.
5. Reach out to the United Burial Fund. They will help provide you with information regarding any aid available in your state. In addition, they can also point you towards other aid offices or groups that might be able to help you cover the costs.

Tips

• Make sure that life insurance policies intended to cover funeral expenses have not lapsed.
• If you have made prepayment arrangements, make sure that someone you trust knows the arrangements you have made as well as the name of the funeral home. This will avoid them selecting a different funeral home and paying again.

Warnings

• Never sign financial deals with a funeral director or home. These should always be done through credible banking institutions or insurance providers.
• Don’t commit to spending money you don’t have before getting aid. It could eliminate some otherwise viable opportunities.
• Never sign a contract with a funeral director or home for ANY kind of service before researching the elements of the contract first.
• Never sign anything during a period of emotional distress without having either an attorney or someone you trust looking it over for you first.
• Be wary of up-selling when at the funeral home.

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Sources and Citations

See also

• Die Peacefully
• Make Preparations for a Funeral
• Cope with Loss and Pain
• Pay Your Respects when Someone You Know Dies
• Let Someone Go
• Write a Eulogy
• Tell a Good Friend That You Are Dying
• Write a Eulogy Speech
• Dress For a Funeral
• Write a Thank You Note After a Funeral

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• Amend a Death Certificate