Hi Haralee! My sisters and I have been thinking about these questions too, ever since our mother passed away earlier this year. On prepayment, I’ve done a little reading that suggests it may be more trouble than it’s worth. For example, if you prepay but the funeral establishment goes out of business or changes management, your contract may not be honored. And, if you prepay, then want to change your plans later, you may not get a full refund. One alternative to prepayment is opening your own savings fund dedicated to final expenses – aka a Totten Trust or “payable on death” account. This lets you be in control and the funds can be used at any funeral home. We just have to be sure that our family has clear instructions. (In my mother’s case, she had written down her preferences but neglected to give copies to her family – and in the chaos over her sudden illness, for months we couldn’t find the documents we knew existed. Yikes.)
Personally, I’m thinking a Totten Trust is the way to go. Keep us posted on what you decide?
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