Peace of Mind in Estate Planning is Possible
Even for Fearful Seniors - Part 1

More Information About Estate Planning for Seniors

As citizens of a culture that worships youth, most of us find it nearly impossible to admit our own mortality, much less make plans for that eventuality. Denial, however, offers no protection from the inevitable. And, as it turns out, we have far more to gain than to lose by sitting down in advance to plan for every contingency life may throw at us. To help you begin this important process, here are the essential items that should be on your list of basic estate planning objectives.

Pre-Need Funeral Planning

For survivors, the hours and days following a loved ones death is no time for weighty decisions. For many Americans, however, this will be the first time they think about preparations for the loved ones funeral. Given the expense and painful emotions often involved, survivors may be in no condition to make choices for themselves or their loved one. According to a survey of its membership by the National Funeral Directors Association, the average cost of a funeral today is $6,500. Thats an expense that can quickly escalate as survivors confront a bewildering range of options on everything from the kind and quantity of flowers to the quality of their loved ones casket. A premium casket alone, for example, can exceed $15,000. Add in the expense of roses over carnations and live music over recorded, and survivors can end up paying triple or quadruple the average funerals cost. Yet, without advanced planning to guide them, survivors may feel guilty about saying anything but yes to the best for their loved one.

Leaving these emotionally charged decisions to grieving family and friends can pose an unfair burden on them in their time of loss. Thats why a growing number of Americans are choosing to take matters into their own hands with pre-need funeral arrangements. According to the American Association of Re-tired Persons, over 21 million U.S. consumers age 50 and over have made pre-arrangements for their own or a loved ones funeral, representing a total of over $25 billion in prepaid funeral expenses. The National Funeral Directors Association reports that nearly 98% of all funeral homes have instituted some kind of pre-need planning program, making it easier than ever for Americans to plan their funeral well in advance. Today, most funeral homes offer several pre-need planning options. Generally, the process begins when individuals sit down with a funeral director to discuss the plans available to them. Once theyve reviewed their plans with their spouse and their loved ones, they purchase a funeral package that reflects their wishes down to every possible detail. Consumers have several alternatives for pre-payment for their funeral plans. One is to purchase a life insurance policy with the funeral home named as beneficiary. Or consumers can make payments in installments over months or years. With yet another alternative, they may work with a licensed funeral director to establish a regulated Trust which will pay their funeral expenses. Lastly, consumers may prepay for their funeral in an account which earns interest, and which can be designated payable on death to the funeral home. After death, if theres more money in their fund than required to pay for their funeral, the family will receive a refund.

The benefits of a prepaid funeral package go beyond cost savings, however. For many families, it provides an important opportunity to talk about sensitive issues and concerns that might otherwise have gone unspoken, and it allows the family to decide together which funeral options will be most meaningful to them. In many ways, prepaid funeral arrangements allow families to lay the foundation for a faster process in the future. For many Americans, the discussion of their own funerals conjures up unwelcome thoughts of death. But once they overcome their initial resistance, most will find more peace of mind than discomfort in knowing that all the details of this important task have been handled as they want them to be.

Charles Benninghoff

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