Estate Planning

Prepaid Funeral Plans can be a R.I.P. Off

By Gregory Herman-Giddens

See this article from the AARP website.  I have had clients who have lost money when their prepaid plans were not honored.  The longer ago the plan was purchased, the more likely it is that there will be a problem  Ownership changes, business termination, and theft or fraud can all affect plans.

One alternative is to establish an irrevocable funeral trust, funded by life insurance.  This technique will protect the policy and provide cash to pay additional expenses such as travel to the funeral, etc.  However, one must be in good enough health to qualify for the insurance coverage.

Full post as published by North Carolina Estate Planning Blog on January 15, 2009 (boomark / email).