Navigating the Risks of Funeral Prepayment Plans

Guidance for Choosing Funeral Products and Services

At Goldberg & Goldberg, we understand the importance of planning ahead for life’s inevitable events. Being proactive and shopping for funeral goods and services can not only be cost-effective but also comforting to those you’ll one day leave behind. Nevertheless, caution is advised when considering funeral prepayment options due to potential pitfalls.

While various legal regulations exist to oversee the management of prepayment funds within the funeral industry, consumer experiences have been marred by issues such as mismanagement and even theft of these precious funds. Unfortunately, many of these transgressions are never brought to light, with bereaved families either unaware or too overwhelmed with grief to seek redress.

Clients should tread carefully; the closure of a mortuary can leave prepaid individuals without both funds and recourse. Furthermore, relocation can bring unexpected challenges, as prepayment agreements often lack flexibility, offering no refund or imposing hefty penalties for changes. What’s more, prepayment now may not shield against price inflation, potentially burdening survivors with unforeseen costs.

For those looking to ensure their funeral expenses are covered without the risks attendant to prepaying, consider establishing a Totten trust through a trusted bank or financial institution. This type of trust is designated specifically for future funeral arrangements, providing the advantages of portability, withdrawal rights, and control during your lifetime—freedoms not commonly associated with traditional prepayment plans.

Goldberg & Goldberg is here to offer advice and guide you through your options so that you can make an informed decision in line with your wishes and financial circumstances. For more information or for a free consultation, please contact us at (301) 654-5757. Your peace of mind is our priority.