Many people today are making their funeral arrangements in advance so that everything will be in accordance with their wishes and their families do not have to struggle through the process while grieving the loss of a loved one. These contracts are called pre-need and are sold to many with the idea that they can pay today’s prices for a product that will not be used, hopefully, for sometime. Unfortunately, this is not always the case. Consider the following before entering into such a contract:

Carefully review the fine print of the contract. Know that some items in the agreement are guaranteed while others may not be. Specifically request to have these items explained to you in detail. Guaranteed prices will not be increased; however, non-guaranteed prices may be included in the contract even though they can be increased when the death actually occurs.

It is always a good idea to have a third party review a contract before signing it. You may bring the contract home with you and have it reviewed by a family member or an attorney. Taking the time to do this now can save both money and aggravation for your loved ones.

Most survivors do not understand the contracts. They believe that everything is paid for in advance and then learn that this is not the case. Pre-need contracts often cause families more problems at the time of death than if no arrangements had been made. Because it is necessary that many non-guaranteed items be included in a pre-need contract, you might want to consider an alternative. Visit your local bank or credit union to inquire about a Totten Trust account. A Totten account is payable-on-death to the named beneficiary. This account remains in your name and you earn interest on the account. You are free to move or close the account at will as you have no contractual obligations and the funds will be immediately available to your beneficiary.