Pre-planning Vs. Pre-funding

Wondering what the difference is between pre-planning and pre-funding a funeral?

Pre-planning a funeral involves making decisions on the service (music selection, readings, burial options, etc.). Many people think of funeral planning as part of their estate planning.

Pre-funding involves setting aside money to cover the costs of the funeral in the future. You can either pay the full amount or arrange a payment plan with the funeral home.

Many people often choose to both pre-plan and pre-fund their funeral when meeting with a funeral home.

Why Pre-plan a Funeral?

  • Make personal and specific selections for the funeral service that most closely meets your preferences and reflect your life’s story.
  • Prevent your loved ones from second-guessing your wishes after you die.
  • Take the time to research funeral homes, burial options, and financial considerations.
  • Consider the option to set aside funds for final expenses, relieving family members of an unexpected financial burden.

Learn more about Preplanning a funeral and what to expect.

Why Pre-fund a Funeral?

There are a number of benefits to pre-funding a funeral:

  • Place the cost of the funeral (at today’s prices) in an investment vehicle that will earn interest to keep pace with inflation to cover the cost of the funeral (at future prices) when the death occurs.
  • Prevent life insurance policies from being depleted at the time of death.
  • Consider options at your own pace to make sound, fiscally-responsible decisions.
  • Spare your loved ones the unexpected cost of a funeral during a highly emotional time.
  • Medicaid/SSI recipients may set aside money to fund the funeral service of their choice as a part of the “spend-down” process to meet eligibility limits.

New York State as the strongest preneed trust laws in the nation. Learn more.

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