I’ve told you before that I sometimes get ideas for Funeral Director Daily articles from the strangest of sources.  Today’s thought process in thinking about year-end planning came to my mind on Wednesday afternoon when I was on the treadmill — it was 41 degrees, cold and cloudy in Minnesota — so I was inside listening to an afternoon business talk show on television while I got my daily regiment in.

The talking heads were talking about the United States’ national debt that now sits at about $38.15 trillion.  In my opinion, it is so large that it just blows my mind looking at all of the zero’s when I write it out.  Anyway, one of the commentators mentioned that the last time the United States had zero debt as a nation was when President Andrew Jackson paid it off on January 1, 1835.  Just for the record, part of how he did it was cancelling infrastructure spending and selling off lands in the western United States.  . . . . The results were not great right away for the U.S. as the federal real estate sales caused a “bubble” in real estate values and other issues led to the “Panic of 1837”.  Here’s a story from History.com on the subject.

This story is not about debt, but the idea of debt and the time around mid-November made me think of end-of-the-year business planning.  Have you looked at your business’ situation and understand how you want to spend the cash-flow that has came in during the year?

I was pretty good about planning and pretty good at holding off major expenses unless I had budgeted for them.  So, at the end of the year I generally had almost all of the cash-flow from the projected profit for the year in a bank account and it was time to decide what I would do with it.

Tom Anderson
Funeral Director Daily

It was at this time of the year that I got serious about what I would do with that money.  Depending on the financial performance for the year my first thought was always about employee bonuses which included retirement plans that included shareholders. . . . and then it was about sharing some of what we had made with non-profit entities in our community through some tax-deductible contributions.  (By the way — we always allocated 1% of annual gross revenues for what we termed “Christian Giving”.  Our team members helped us decide to which organizations we should send it to each year.)

Next, we looked at Section 179 depreciable items to see if there was anything we could take advantage of before the end of the year and expense the item completely during that calendar year.

Finally, if we had debt — and we carried very little — we might look at paying it down, especially if interest rates were on the high side.   And we would look at putting some of the cash-flow into our funeral home savings account to be used for future projects or to be simply divided up among shareholders when we decided to leave the business.

My goal here is not to tell you what to do because every business is different and there are thousands of ways to allocate a business’s cash-flow, but simply to get you to think about what might be good options now so that you have time to implement those options between now and December 31.

To that end, I came upon two short articles from the business consultants and tax specialists at CLA that might be of interest to you:

1. Year-end planning to strengthen your business operations
2. Tax Bill signed into law:  What it means for you and your tax strategy.

More news from the world of Death Care:

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“A servant’s attitude guided by Christ leads to a significant life”

December 23, 2024

Grief is a journey that no one wants to traverse, yet it is a path many will find themselves on when a loved one passes away. As we contemplate the profound impact of loss, it’s vital to recognize how we can reach out and support our friends during their times of sorrow. Understanding our role can foster connection and compassion, especially in a world filled with emotional challenges. When we think about navigating this sensitive subject, finding the right balance between offering support and respecting personal space is essential, particularly as families often seek services from adjacent resources, such as Rochester, NY funeral homes. Understanding Grief and Its Phases Before we can effectively support our grieving friends, we should take time to understand the grieving process itself. Grief is not linear and encompasses various emotions and phases: denial, anger, bargaining, depression, and acceptance. The upheaval following a loss can bring about tumultuous feelings, and it’s important to remember that your friend may oscillate between these stages throughout their journey. A critical way that we can help is by being present. Sometimes, your friend may need a listening ear more than they need advice. Allowing them the space to express their thoughts and feelings without judgment can be incredibly beneficial. It may be helpful to encourage them to share funny or touching memories they have of their loved one, a practice that can provide moments of solace amidst the turmoil. Offering Practical Support Helping a friend through grief also means offering practical assistance. Grieving can be an exhausting and overwhelming experience, leaving little energy for everyday tasks. Offer to help with simple chores—cooking meals, running errands, or helping keep things organized at home. Sometimes, just knowing someone is there, offering to shoulder some of life’s burdens, can alleviate the stress your friend is feeling. In addition to offering tangible help, suggesting options from local services can also ease the burden. For instance, if your friend needs support in navigating funeral logistics, it’s wise to mention reputable funeral homes, that they could consider, like Rochester Cremation. Knowing that compassionate professionals are available can bring reassurance and peace to their difficult journey. Creating a Comfortable Environment for Healing When it comes to helping a grieving friend, creating an environment that allows for open conversation is critical. While checking in on them is appreciated, remember to approach them sensitively. Each day might feel different for your friend, so the time you spend together should evolve based on their needs and feelings. Inviting your friend out for a walk—some fresh air can aid in emotional healing—might help distract them from their grief, although it’s essential not to force social interaction if they seem disinterested. The simplest gestures, like a text message to let them know you’re thinking of them, can go a long way, even if they don’t respond immediately. Respecting Boundaries and Understanding Signs of Need While offering support, it’s just as vital to acknowledge when to step back. Everyone’s process is unique, and not everyone is comfortable discussing their grief openly. Pay attention to their cues; if they seem withdrawn or if they indicate a desire for solitude, honor that choice. Encourage professional support if needed. Whether it’s suggesting a grief counselor or attending a support group together, prioritizing their mental health by finding professional help can be a game changer. Informing them about available local resources shows that you care and are looking out for their well-being. The road following a loss is fraught with challenges. Yet, knowing we can play a role in transforming a friend’s grief reality can inspire hope. In conclusion, as we support our friends during these heartbreaking times, let’s embrace compassion and understanding, remembering our larger community as we navigate the journey together. If you have questions regarding resources or services through Rochester, NY funeral homes, reach out for help. The existence of compassionate professionals at places like Rochester Cremation highlights that support is always within reach.

Pope Francis Has Published Revised Funeral Plans, Opting for Simplicity

From the day Pope Francis was elected to lead the Catholic Church in 2013, it was clear that he’d be doing things a little differently than his predecessors. The night of his election, for instance, he took a bus back to his hotel instead of riding in the official papal car. He has also spent the last 11 years living in a guest house behind St. Peter’s Basilica rather than residing in the papal apartments of the Apostolic Palace. All in all, Pope Francis has lived a humble, simple, “no-frills” papacy — and now he’s ensured that his last rites will be carried out in the same manner.

On November 20, Pope Francis approved a much simplified edition of the “Ordo Exsequiarum Romani Pontificis,” or “Funeral Rites of the Roman Pontiff” book. This volume details how every aspect of the death and disposition of a pope should be handled, from who is the first person to be notified of his passing to how the burial will be completed. The last time the rites were updated was in 1998; those directions were followed for the funerals of St. John Paul in 2005 and for Pope Benedict XVI, who retired in 2013 and died in 2022.

Downsized coffin structure

One of the biggest departures from recent papal rites — and certainly the most publicized change — is Pope Francis’ request to rest in a simple zinc-lined wooden casket rather than within three interlocking coffins, bucking a tradition that has stood for hundreds of years.

The coffin-within-a-coffin-within-a-coffin structure was created for practical as well as symbolic purposes. First, the triple layers created an airtight seal around the pope’s body, with the middle soldered-shut lead layer ensuring durability and providing a surface into which the pope’s name and dates of his pontificate are engraved.

Inside the lead coffin was a smaller one made of cypress wood, which represented the commonness and humanity of the pope resting within. Inside the cypress coffin would be a copy of the eulogy read at the pope’s funeral Mass as well as three bags of coins: silver, gold, and copper, with the number of each representing the number of years he served. 

The exterior wooden coffin was made of elm, one of the most precious woods available in Rome. Before the final coffin was nailed shut with golden nails, a parchment listing the achievements of the pope would be inserted into a copper tube and placed inside the casket.

Pope Francis’s simple zinc-lined coffin will form a hermetic seal and will preserve the coffin’s structure and integrity, even as the exterior wood deteriorates. It’s not clear how the engraving and insertion of coins and documents will be handled, although those provisions are most certainly included in the final version of the rites book.

Simplify, simplify, simplify

At Pope Francis’ request, the new “Funeral Rites of the Roman Pontiff” includes several other measures that reflect his dedication to simplicity and humility more akin to a commoner than the head of the Catholic Church. These include:

• Burial will take place outside of the Vatican for the first time in 100 years. Instead of being laid to rest with 91 other popes in the grottoes beneath St. Peter’s Basilica, Pope Francis will be buried in Santa Maria Maggiore (St. Mary Major) basilica in Rome. St. Mary’s is the church the pope usually goes to pray before traveling abroad.
• Rather than his body being displayed on an elevated bier for public viewing, Pope Francis’ body will be placed in his simple coffin with the lid removed.
• Pope Francis’ death will be pronounced in his private chapel, rather than in the room where he dies.

Archbishop Diego Ravelli, master of papal liturgical ceremonies, told Vatican News that the revised rites highlight “even more that the Roman Pontiff’s funeral is that of a shepherd and disciple of Christ and not of a powerful man of this world.”

Is a prepaid funeral plan the right choice for you? Let’s explore the pros, cons, and alternatives.

Have you considered how the funeral your loved ones choose for you would be different than one you plan for yourself? Remember, someone else will do it for you if you haven’t created your plan. In addition to that, they’ll be planning while they are grieving. They’ll also be figuring out how to pay for it. So what’s the solution? A prepaid funeral plan is one method to overcome this situation, and it is becoming increasingly popular.

A prepaid funeral plan is a contract with a funeral home or cremation service to pay for your funeral services in advance. By making your decisions now, you could lock in today’s prices and ensure your funeral is planned according to your wishes. The contract will itemize the services to be provided by the funeral director and staff, use of facilities, merchandise such as a casket or urn, and other items, including the cost of death certificates, obituary, clergy honorariam, floral arrangements and may even include certain cemetery costs. Some “preneed” plans offer price guarantees to fix the cost a current prices.

This article will help you make an informed decision about whether a prepaid funeral plan is right for you. If you need more information, please let us know. We’ll be happy to have a specialist contact you to answer any questions.

The Benefits of a Prepaid Funeral Plan

Peace of mind for you and your family.

One of the most significant advantages of a prepaid funeral plan is the relief a plan can offer your family. Grieving loved ones won’t have to make stressful and overwhelming last-minute decisions or worry about finances. Everything is arranged and paid for beforehand, allowing your loved ones to focus on saying goodbye.

Locking in Today’s Prices

Funeral costs tend to rise over time. By prepaying, you may protect yourself from inflation and secure the services you want at today’s rates. A “guaranteed” plan can be a considerable financial benefit, especially if your plan covers a broad range of services.

Personal Control Over Funeral Details

Prepaid plans allow you to choose how you want to be remembered. You outline your preferences, ensuring that your funeral aligns with your values and beliefs. You specify the burial or cremation specifics along with the type of service, music, and readings. By doing your own planning, you’ll be able to add personal details that reflect your unique personality and characteristics.

>>Learn more about planning a funeral.

Reduces the Financial Burden

Funerals can be expensive. Today, average funeral costs range from $7,000 to $12,000 and payment is due at the time of the funeral. By paying in advance, you relieve your family’s financial pressure. It’s one less thing for them to worry about during an emotional time.

>>Learn more about funeral costs.

Other Things to Consider About Prepaid Funeral Plans

Lack of Flexibility

Once you choose a prepaid funeral plan, making changes can be challenging. If you move to another state or country, your plan might not transfer easily. Some plans require additional fees to make it applicable in your new location. You can minimize risk by ensuring your plan can be transferred to another location if necessary. Look for a plan that includes portability and has provisions to allow modifications. Funding your plan with funeral insurance (as described below) offers the flexibility of changing your funeral provider.

What Happens if the Funeral Provider Goes Out of Business?

Funeral homes and providers are not immune to financial troubles. If the company handling your plan goes out of business, you could risk losing the money you paid in. Some states have laws that protect prepaid funds, so it’s crucial to research the provider’s stability and any guarantees they offer. Using funeral insurance as the payment method provides financial protection in case your provider goes out of business.

Opportunity Cost

Prepaying for a funeral ties up funds that could potentially be invested elsewhere. If you are financially savvy, the money used for a prepaid funeral might show better growth through other investments. For many people, the peace of mind that a prepaid plan offers is extremely valuable and there is no need to liquidate investments to pay for the funeral. It’s always best to consult with a financial advisor to make sure that any significant spending makes sense for you.

Your Options For Funding a Prepaid Funeral Plan

Pay the Funeral Service Provider

A prearranged contract can be purchased directly from a funeral service provider, such as a funeral home or cremation service. Since this purchase is made in advance, the provider may be required to place some or all of the proceeds in a trust. Each state has laws governing the trusting of the proceeds of the sale to ensure that money is available at the time of death. These laws vary by state. Keep in mind that paying the provider directly could pose problems if you or your survivors need to change to another provider at the time of the funeral.

Funeral Insurance

Funeral insurance is a specialized life insurance policy designed to cover your funeral, burial, cremation, and other final expenses. There are basically two types of funeral insurance – preneed insurance, and final expense insurance (also known as burial insurance). Preneed insurance is typically used to fund a prearranged funeral contract, whereas final expense insurance is a stand-alone policy. Preneed policies can be paid in full in a one-time payment or payments over 1, 3, 5, or 10 years. Final Expense policy premiums must be paid continually to keep the policy in force. Both types of policies offer greater flexibility and options than purchasing directly from a funeral service provider.

>>Learn About Funeral Insurance

Funeral Trusts

You can set aside funds in a trust specifically for funeral expenses, and those funds are protected from creditors. The trust is tied to a prearranged funeral contract, with the trust’s beneficiary being the funeral service provider. Typically, the funeral service provider will help you set up the trust when you enter into a contract with them.

Pay-on-Death (POD) Accounts

Some people prefer to set aside funds in a savings account specifically for funeral expenses. A Pay-on-Death account allows you to designate a beneficiary who can access the funds immediately after your passing, without going through probate. This option offers flexibility and ensures that the money is available for funeral expenses without locking you into a specific funeral provider. Of course, you need to select the beneficiary carefully since the money in the account is not required to be used for funeral expenses.

>>Funeral Trusts and Payable on Death Accounts

Is a Prepaid Funeral Plan Right for You?

Whether or not you should buy a prepaid funeral plan depends on your unique situation. Here are some key questions to ask yourself:

• Do I want to ensure everything is planned and paid for in advance to relieve my family of the burden?
• Do I have a preferred funeral provider, and do I feel comfortable with their financial stability?
• Am I concerned about rising funeral costs?
• Is there a chance I might move to another location in the future?

If you value the certainty of having your funeral paid for and arranged, and you’re confident in the provider you choose, a prepaid funeral plan might be an excellent option. However, if you prefer more flexibility in the choice of funeral provider or the ability to manage your funds yourself, alternatives such as a final expense policy or Pay-on-Death account might be a better choice.

FREQUENTLY ASKED QUESTIONS

How do prepaid funeral plans work?

When you purchase a prepaid funeral plan, you pay a lump sum or make regular installment payments to cover the anticipated costs of your funeral. The funds are typically held in a trust or insurance policy.

What do prepaid funeral plans cover?

A prepaid funeral plan that covers the things you decide are important. You can plan a simple gathering or a grand event. If you want to have a traditional burial, it can include embalming, a casket, flowers, catering, and cemetery property. If you are planning a simple cremation, you can include the process of cremation along with an urn.

How much do prepaid funeral plans cost?

Prepaid funeral, cremation, and cemetery plans set aside funds for specific products and services. The exact cost depends on what you choose. Prepaid plans usually start in the low thousands. According to the National Funeral Directors Association, the median cost for a funeral with a casket was $8,300 in 2023. The median cost for a cremation with an urn was $6,280. Those median costs do not include cemetery costs.

What happens if you miss a payment on your plan?

A prepaid funeral plan is similar to car insurance in that if you miss a payment, you receive a lapse warning. Your plan may have a “grace period,” but ultimately, it will be canceled for non-payment. Be sure you understand the terms of your specific plan. Depending on your contract, you might be able to use the money you’ve paid in to fund future arrangements, but lose any price protection.

What happens if the provider I purchase my prepaid plan goes out of business?

The laws protecting prepaid plans vary by state. Make sure you know what kind of protection your state offers. In many cases, your money is kept safe by a third party (an insurance company or a trustee, not the funeral home) until the time of your funeral. In these cases, transferring your account to another provider may be possible. Of course, research the funeral home offering the prepaid plan to ensure its reputation and financial stability.

What happens to my prepaid funeral plan if I move?

Some plans offer relocation protection. This is especially true when you purchase from a funeral home that is part of a chain. Again, you must understand the details of the plan you are buying.

Do I need a prepaid funeral plan if I have sufficient financial resources?

Will your family have access to your financial resources? Since payment is due at the time of the funeral, it could be a problem for your family if they do not have ready access to cash from your estate. Also, you need to consider other final expenses that you may leave behind. Depending on your circumstances at the time, there could be considerable expenses to be paid, such as, medical bills, legal fees, income taxes, living expenses, etc.

Final Thoughts

A prepaid funeral plan can be a smart and thoughtful way to prepare for the inevitable. The right plan can ease financial and emotional stress for your loved ones. Like any big purchase, you should explore alternatives before making a decision. Regardless of what you choose, planning ahead is a responsible step that can provide peace of mind for you and your family.

To get more information on prepaid funeral plans, you have come to the right place. Our website has information that can help you better understand the basics. We also have a network of specialists who can help you find a funeral home with a prepaid plan that will best suit your needs. Just let us know you would like someone to contact you, and we’ll put you in touch with a preneed specialist in your area. Email support@funeralwise.com.

Whether you choose to purchase a prepaid funeral plan or not, we suggest you consider preplanning your funeral. The Funeralwise Wise Planning System is a great option. With the Wise Planning System, you can plan in as much detail as works for you. Click here or on the link below to get started.

>>Learn More About the Wise Planning System