If you have ever had to bury a loved one, you probably already know just how expensive funerals can be. Indeed, according to Bankrate, the average burial in Delaware costs nearly $8,000. Funerals with cremations are cheaper, but they still cost roughly $7,000.
It seems cruel to force your grieving loved ones to foot the bill for your final expenses. Luckily, there are many options for paying for your own funeral, including joining a funeral trust. Before you do so, though, you should know at least three things about these trusts.
1. Funeral trusts are pooled trusts
If you have begun the estate planning process, you undoubtedly are familiar with trusts. There are many different types of trusts, though.
Funeral trusts are pooled trusts, which means the money or assets of many individuals go into the trust. When a participant dies, the funeral home uses money in the trust to cover his or her final expenses.
2. Funeral homes administer the trusts
Funeral directors typically set up and administer funeral trusts. This means some trusts might be better than others. Consequently, before you jump into a funeral trust, it is advisable to research the funeral home and its financial solvency.
3. Funeral trusts cover different expenses
You should ask the funeral director about which end-of-life expenses the trust covers. After all, different trusts are likely to cover different expenses. Nevertheless, if you want to find a trust that pays for everything, you probably can.
Ultimately, if you ask the right questions and find the right trust, joining a funeral trust might be a good way to take care of your final expenses while you are still alive.