Pre-planning FAQ

Why should I pre-arrange my funeral?

When you plan ahead, you will be able to consider the many options available. You will have the opportunity to make an informed decision about your funeral arrangements, or the form of memorial you prefer. You will be able to make choices that are meaningful to both you and your family, and you will gain peace of mind knowing your family and friends will be relieved of the emotional and financial burden often associated with making arrangements when a death occurs. In addition, by pre-funding your funeral and cemetery services, a guaranteed price contract will allow you to purchase at today's prices, free from inflationary pressures in the future. (Check to determine whether prices are guaranteed).

If I pre-plan and prepay my funeral or burial, how do I know that the money will be there when I die?

It's important to remember that prearrangement is a two part transaction. The first is the funeral agreement between you and the funeral home. That agreement is comprised mostly (sometimes completely depending upon your state laws) of elements that are guaranteed to be performed at no additional costs to your family once the funding is complete. The second is the actual funding of the agreement. Funds can either be placed into an insurance policy or into a trust. Either way, these funds will be irrevocable for Medicaid purposes.

If I prepay my funeral, what happens to the interest that my money earns?

If you have a prearranged funeral agreement that is comprised of items that are guaranteed to be performed by the funeral home at no additional cost to you, the interest (or growth if a life insurance policy) is retained by the funeral home to offset the rising costs of those specified goods and services over time. That's the value of prearranging and pre-funding at today's costs.

Can I change any of these prepaid funeral services later?

Yes, changes are possible as long as it doesn't conflict with Medicaid requirements.

What if your funeral home changes ownership?

Prior contractual agreements are not voided simply because a change of ownership occurs. Funeral Homes are required by law to honor pre-existing pre-arrangements.

Can social services take my pre-arrangements away from me?

Take away? No. Funds set aside to pay for a reasonable funeral arrangement are not counted as assets as one qualifies for social services.