Have you prepaid your funeral plans?

[ShokWaveRider]

Your answer isn't analogous to the OP's question, so why even post?

Guilty as charged.... Just like lot of others who post here. Not referring solely to this subject. At least I was somewhat in context with reference to our own position on the pre-Paid funeral costs subject. Perhaps I was just a little bored and felt the need to voice my opinion with reference to my own situation. I will go back to my cocoon, sorry I typed.

 

[PatrickA5]

We have prepaid for everything: funeral, plots, casket, liners, flowers, everything.

My DF had done the same thing and when the time came it worked out perfectly. As a test for the funeral home, we met with them to arrange the funeral and didn't tell them we knew about his prepayment plans. To their benefit, they found the prepayment info from 20 years earlier and the planning couldn't have been easier.

The main difference between what we've done and the other posts above is our money for the funeral went into a trust at a local bank (instead of insurance) and it is revocable. So, it doesn't hide the money from Medicaid, but we can ask for a refund at any time. I get an annual statement from the bank. Most items are "frozen" in cost except for a few items that are paid to outside parties, like obits, flowers, etc. We prepaid money for those items, but if they go up then our heirs might have to come up with a little cash. I think in DF's case, we had to pay $200 for items that had gone up over the last 20 years.

Everything is spelled out in detail in our "When I'm dead" book, so my kids shouldn't have to do much of anything for our funerals except maybe show up if they feel like it.

 

[Texas Proud]

My parents prepaid for cremation. One call and the whole process was very simple during those difficult times.
I have considered the same thing, but not acted yet.

My sister already paid for the same.... I have the info to call when it is necessary (hopefully years from now)...


My mom is 99 and we have done nothing... I will handle when the time comes...

 

[joeea]

My mom is in assisted living and has about 7-8 years before her personal assets run out. After that she will need to apply for Medicaid to cover the assisted living costs.

We are thinking about prepaying her funeral expenses while she still has money, and so she can select the casket, grave stone, etc. that she would like. As long as the plan is setup as irrevocable Medicaid isn't supposed to count it as an asset.

I've been talking with a funeral home and they have an insurance plan that can be set up as irrevocable. It's supposed to be guaranteed coverage even if prices increase in the future except for the death certificates and taxes. It's also suppose to offer protection if the funeral home were to go out of business before she dies.

It sounds like a smart thing to do, but I'm curious if anyone here has prepaid their funeral plans like this?

I suppose you should try and prepay for everything you can as long as you don't care when you get on the Medicaid dole.

Certainly prepay for your funeral and give away any assets you can legally. I'm pretty sure you can donate to charity safely. And there are some "advisers" who will help you make yourself poor before Medicaid kicks in. They can get very creative.

 

[Dash man]

Both of my parents prepaid for their funeral planning, and it couldn’t have been easier for us. So DW and I prepaid for our funeral expenses to make it easy on our kids. We also bought plots for us with a nice granite memorial headstone and bench. We both agreed when one of us goes, the other will visit, so we gave ourselves a place to sit. After that purchase, we were able to add a pedestal for the cremains of my DFIL and DMIL to sit on the corner of our plots.

 

[gamboolman]

Ms. Gamboolgal & I have prepaid for Burial and for our Headstone.... We like to be prepared and to have all things planned out......Kids have No Decisions to make....including end of Life criteria....all took care of with legal wills and directives.....prepared and ensured by highly paid attorneys in The Woodlands.....

Our Headstone will be set this year over our plots in the country side cemetary of rural Flint, East Texas......lot's of history and relatives for us in East Texas.....

There is a time and season for all things under the Sun....
Ecclesiastes Chapter 3, Verses 1-8

Life's A Dance And You Learn As You Go....gamboolman.....

I've had heaven on earth since I met ms. gamboolgal when she was barely 17.....

 

[Shabby]

I am hoping my last check is to the funeral home and it bounces

 

[Oh no]

I told my DW I wanted to be cremated.......
She made me an appointment for Tuesday.

 

[Teacher Terry]

MA, I was a guardian for my friend with dementia. A social worker suggested prepay her funeral cost because it was legal. I did as she literally had no family still alive to pay. Eventually her money ran out and she went on Medicaid. I see this as entirely different than hiding assets as some one sarcastically equated the 2.

 

[Nemo2]

I told my DW I wanted to be cremated.......
She made me an appointment for Tuesday.

 

[ychuck46]

Prepaying for many things is an invitation to be ripped off, including prepaid funeral plans. Read the horror stories about what truly has happened to many families when they did so years prior. In fairness I am a proponent of cremation since I believe it is the best of all worlds, including the least costly for my wife and/or child when my time comes.

 

[SpinDoctorTX]

We addressed it differently. Neither of us wants or expects a funeral with casket, viewing, body burial, gravestone, etc., although funds for a modest memorial service are accounted for in our Wills.

We are registered organ donors, and also registered with the State Board that oversees cadaver donations to medical schools, etc.

So, any parts that can be used, will go to those who can use them. Anything unusable will be cremated, not at our estate's expense.

Thank you for that information! We just registered for that here- awesome resource! I'm an organ donor however who knows if any would be viable enough to use- even at 58 yo!

 

[meleana]

No. I have 2 CD's to pay funeral/cremation expenses, etc. I need to add some more money I think. We are not sure where we will even be permanently living in retirement yet anyway.


But I would not prepay. Just put money aside and leave instructions.

 

[mountainsoft]

But I would not prepay. Just put money aside and leave instructions.

Unfortunately, that's not an option if you will need to apply for Medicaid. Any money you set aside would be considered an asset and would disqualify you until you spend down to $2000 or so. Prepaying or an irrevocable trust are about the only options available.

 

[meleana]

Unfortunately, that's not an option if you will need to apply for Medicaid. Any money you set aside would be considered an asset and would disqualify you until you spend down to $2000 or so. Prepaying or an irrevocable trust are about the only options available.

And why would I be applying for Medicaid? Why would anyone who boasts how much money they have and how they retired early on this forum apply for Medicaid?


So- what you do is you give your kids- if you have them- a $10,000 gift each year while you are alive to pay for it- again- with instructions. You tell them to put the money aside n a savings account for it.

 

[MichaelB]

Once again, the thread topic is about someone who might run out of money after an extended stay in assisted living. In that case, prepaying funeral costs by purchasing a funeral insurance policy, is a way to avoid imposing financially on one’s surviving family members.

 

[meleana]

Once again, the thread topic is about someone who might run out of money after an extended stay in assisted living. In that case, prepaying funeral costs by purchasing a funeral insurance policy, is a way to avoid imposing financially on one’s surviving family members.

Yes. Right, if you are already in assisted living, it might be too late to give away money to your kids to pay for your funeral.


Good lesson for most of us to do so BEFORE being in this situation so you will not have to prepay funeral costs.

 

[Monterey298sc]

Yes. Right, if you are already in assisted living, it might be too late to give away money to your kids to pay for your funeral.


Good lesson for most of us to do so BEFORE being in this situation so you will not have to prepay funeral costs.

Do you know how many family come in who had a bad stroke and immediately when into a NH for the rest of there life. This is something NO one thinks will happen but does. Average cost of a NH is 8,000-10,000 per month. Figure that up.

 

[street]

^ pre-pay is a great tool but may not have to be used by all.

We have bought real-estate there (cemetery) but nothing else. I most likely will be cremated and spread at the ranch and a few other places I spent most of my time and life at.

 

[meleana]

Do you know how many family come in who had a bad stroke and immediately when into a NH for the rest of there life. This is something NO one thinks will happen but does. Average cost of a NH is 8,000-10,000 per month. Figure that up.

Yes! Of course I know it. I worked in health care all my life and I had elderly parents that were in nursing homes and assisted living. Most of my life, in fact, I worked in home health care in management



But what does the cost of a nursing home have to do with the question of prepaying your funeral expenses? Two separate issues.


PS This is why at the "young"age 62 I am also looking into possibly moving to an independent living situation in a CCRC in a couple of years.

 

[mountainsoft]

Why would anyone who boasts how much money they have and how they retired early on this forum apply for Medicaid?

As I mentioned in my original post, I am inquiring for my mother who had a stroke a couple years ago. She thought she had planned ahead, her house was paid for, she had a meager savings, and she had a steady retirement income. She wasn't wealthy by any means, but she had enough to last the rest of her life. Then she had a stroke, and had to move to an assisted living home. At those prices her income and assets from selling her home will be gone in a few years, perhaps less if she has another expensive medical issue. At some point she will run out of money and need to apply for medicaid assistance.

So- what you do is you give your kids- if you have them- a $10,000 gift each year while you are alive to pay for it- again- with instructions. You tell them to put the money aside n a savings account for it.

It's not always that simple. For starters, my mom cut off contact with everyone for over 20 years so she wasn't willing, or didn't have the forethought, to give us money for her future needs. Bad choices on her part, but it's too late now to worry about all that.

Also, medicaid looks back five years from the time you apply. If you've given away money during that time, they count that as an asset that has to be paid back before they will provide assistance. Mom "should" have more than five years left with her own money, but it would only take one medical situation to ruin that plan. So the setting aside money option has already passed...

My wife and I are planning to retire in five years, but retiring early doesn't mean we are retiring wealthy. We will be able to live comfortably ourselves, but we aren't wealthy enough to support my mother too. For that matter, we couldn't afford to support her now while we are both working. We also need to help care for my wife's mom so paying ourselves is just not an option.

 

[Teacher Terry]

Prepaying is a great idea. I think it’s unethical to give your kids money and then go on Medicaid. Legal isn’t always the same as living with integrity.

 

[Monterey298sc]

Yes! Of course I know it. I worked in health care all my life and I had elderly parents that were in nursing homes and assisted living. Most of my life, in fact, I worked in home health care in management



But what does the cost of a nursing home have to do with the question of prepaying your funeral expenses? Two separate issues.


PS This is why at the "young"age 62 I am also looking into possibly moving to an independent living situation in a CCRC in a couple of years.

Because you will spend down your assets fast and would have to go on Medicaid, unless you have a ton of cash.

 

[meleana]

Because you will spend down your assets fast and would have to go on Medicaid, unless you have a ton of cash.

Right. Prepaying your funeral expenses also spends down your assets- whether you give the money to your kids to do it or to the funeral home.



I am only stating that instead of giving money to a funeral home to hold for "X" amount of years until you die, why not just give it to your kids to "hold" for you to pay for your funeral expenses. I am only talking like $20,000 or so. Not your entire portfolio. SMH....

 

[meleana]

As I mentioned in my original post, I am inquiring for my mother who had a stroke a couple years ago. She thought she had planned ahead, her house was paid for, she had a meager savings, and she had a steady retirement income. She wasn't wealthy by any means, but she had enough to last the rest of her life. Then she had a stroke, and had to move to an assisted living home. At those prices her income and assets from selling her home will be gone in a few years, perhaps less if she has another expensive medical issue. At some point she will run out of money and need to apply for medicaid assistance.



It's not always that simple. For starters, my mom cut off contact with everyone for over 20 years so she wasn't willing, or didn't have the forethought, to give us money for her future needs. Bad choices on her part, but it's too late now to worry about all that.

Also, medicaid looks back five years from the time you apply. If you've given away money during that time, they count that as an asset that has to be paid back before they will provide assistance. Mom "should" have more than five years left with her own money, but it would only take one medical situation to ruin that plan. So the setting aside money option has already passed...

My wife and I are planning to retire in five years, but retiring early doesn't mean we are retiring wealthy. We will be able to live comfortably ourselves, but we aren't wealthy enough to support my mother too. For that matter, we couldn't afford to support her now while we are both working. We also need to help care for my wife's mom so paying ourselves is just not an option.

I understand all that. I have been through it with my parents.


But in their case my dad died within 8 months between the hospital and nursing home and my mom within 3 months in assisted living. So did not run out of money.



It is too late in your mom's case. But gives you something to think about for when your time comes.