Home / Home & Family / End-of-Life Preplanning Brings Peace of Mind
Red roses on grey granite tombstone outdoors. Funeral ceremony

End-of-Life Preplanning Brings Peace of Mind

/Updated /4 Comments/in /by Mary Hunt

 

Planning for their parents’ end-of-life expenses is about the last thing most adult children want to deal with. At least not right now.

Red roses on grey granite tombstone outdoors. Funeral ceremony

A traditional funeral with end-of-life services with extras like flowers, obituary notices, acknowledgment cards and limousines can bring the total to $15,000 or more. Families often overspend on a funeral or burial because they think of it as a reflection of their feelings for the deceased.

Recently I heard from one of my EC readers, responding to a previous column. She brought up an important topic, one that is not easy to address. So let’s gather into a huddle, wrap our arms around one another and take a collective deep breath.

Dear Mary: My comment is in response to Where to Keep Money for Mom? and Bonita in South Dakota who was looking for input on how to invest $10,000 for 62-year-old mother who has no savings, no life insurance, and lives on disability.

I would recommend they go to any funeral home and work with the person there who handles pre-paid funerals.

We did this for my dad before he moved into a long-term care facility, which was going to drain his remaining assets to $0. A pre-paid funeral policy is excluded from the asset base, is protected once the assets are gone and a person goes on medical assistance.

With all the other drama that comes with aging parents, it is nice for my sister and me to know that the end is covered and won’t create another drain/strain on everything. Molly

Dear Molly: Thanks for this wise advice. In fact, many elder law attorneys advise prepayment as a way to invest in assets that will not be countable by Medicaid or SSI.

However, I want my readers to know that there are pitfalls on the road to pre-paid end-of-life arrangements, which they need to know about in order to avoid falling into them. Buyers beware.

Consumers lose millions of dollars every year when pre-need funeral funds are misspent or misappropriated. A funeral provider could mishandle, mismanage or embezzle the funds. Some go out of business before the need for the pre-paid funeral arises. Others sell policies that are virtually worthless.

Consumers received some protection from unscrupulous funeral providers with the creation of the Funeral Rule in 1984. This rule, administered by the Federal Trade Commission (FTC), requires funeral providers to give consumers accurate, itemized price information and other specific disclosures about funeral goods and services. The problem is that many of these kinds of end-of-life contracts are governed by state laws and vary greatly from one state to another.

Following are some questions that the FTC recommends asking before signing up for a pre-need funeral arrangement. The questions are from the FTC’s free article series, Shopping for Funeral Services.

  • What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.
  • What happens to the interest income on money that is prepaid and put into a trust account?
  • Are we protected if this organization goes out of business?
  • Can we cancel the contract and get a full refund if we change your mind?
  • What happens if we move to a different area or die while away from home? 
  • Can your end-of-life prepaid funeral plans be transferred?

Sometimes it’s more convenient and less stressful to price shop funeral homes by phone. The Funeral Rule requires funeral directors to provide price information over the phone to any caller who asks for it.

Should you run into problems or have questions about your state’s laws, most states have a licensing board that regulates their funeral industry.

 

Print Friendly, PDF & Email

More from Everyday Cheapskate

home decor

10 Everyday Items You Never Think to Wash (But Should)

a lit sparkler with an american flag in the background 4th of july hacks tips and recipes

34 Fourth of July Recipes and DIY Hacks for a Stress-Free Holiday

wooden die spell july with patriotic decor in background

7 Best Things to Buy in July for Huge Summer Savings

Grilled Peaches with Balsamic and Blue Cheese

Summer Grilled Peaches with Balsamic and Blue Cheese

a rustic wooden christmas tree in the sand on the beach

Christmas in June? Try This Amazon Prime Day Gift Guide

why does my ice taste weird soda tea lemonade juice

Why Does My Ice Taste Weird? Here’s the Answer

a single car garaged with beautiful flowers along landscape beds things ruined by heat in the garage

25 Things Summer Heat Can Ruin in Your Garage

amazon prime day 2026 is coming everyday cheapskate mary hunt guide for cheapskates

The Cheapskate’s Guide to Winning Prime Day 2026

prime day is here crockpot steamer blackstone griddle

Your Guide to the Best Amazon Prime Day Deals of 2026



Please keep your comments positive, encouraging, helpful, brief,
and on-topic in keeping with EC Commenting Guidelines



Caught yourself reading all the way 'til the end? Why not share with a friend.

4 replies
  1. sue says:

    my folks were wise enough when we were growing up, to pre-pay for their own funerals. when they passed, we children only had to call the funeral home, and make a few decisions – mainly due to the things they chose – were discontinued (i.e. particular casket etc) but we only paid a small amt to get one comparable to their choice. same with a few other things. so what wouldve been an enormous outlay, was less than 1,000 for us for both of them. they had everything written down, clothing, service, flowers, etc. bless their hearts, of course we were grown when they passed. but be very careful in prepaying too, make sure you have clause for inflation, discontinued items, venue and so on. and be aware that you dont have to choose anything from the funeral home anymore. flowers, caskets, thank you cards, it can all be done elsewhere and used at the home, even walmart sells caskets!

    Reply
  3. Lisa Phillips says:

    Donate your body to a medical school and the costs are are almost nothing. They pick up the body. Depending on the program, the ashes are returned in a year, or scattered or buried in a ceremony. Both my parents did this.
    My son-in-law is a paramedic. My daughter asked himwhat he thought, and he said it really helped him learn. Especially trying to intubate a person for the first time.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

Encouragement: The One Thing We Need to Keep Goingyou got this sign encouragement positive attitudeolder woman writing in journal while laying in bedAsk Me Anything: Best Cookbooks for Kitchen Newbies | Insuring Fine Jewelry