Dear Savvy Living,

My husband and I are both in our 70s and have been talking about getting our funeral and burial arrangements taken care of. Do you have helpful suggestions on this matter?


Dear Kicking,

Planning your funeral in advance is a smart idea. Not only does it give you time to make a thoughtful decision on the type of service you want, it also allows you to shop around to find a good funeral provider and preplanning will spare your family the stress of making these decisions at an emotional time. Here are some suggestions to consider.

Compare Providers

Choosing a quality funeral provider is the first and most important decision in preplanning your funeral. No matter what type of funeral or memorial service you envision, it's wise to talk with several funeral homes so you can adequately compare the different services and prices.

Funeral Rule

Are you aware of the "funeral rule," a Federal law that requires funeral directors to provide you with an itemized price list of their products and services? Be sure to ask for it and review it carefully. The price list lets you choose only the products and services you want. (Note: If state or local law requires you to buy a particular service, the funeral provider must disclose it on the price list, along with a reference to the law.)

Casket Shopping

You can save big - at least 50% - by purchasing a casket from a casket store versus the funeral home, and the funeral home providing your service must accept it (it's the law). To locate casket stores and online stores visit www.casketstores.com and click on "Store Directory" or see www.funerals.org/caskets.htm.

Savvy Fact: According to the National Funeral Directors Association the average cost of a funeral today is around $6,500, not including cemetery charges.

Should You Prepay?

Preplanning your funeral doesn't mean you have to prepay too, but if you are considering paying in advance, be cautious. Prepaid plans are not regulated by Federal law and state regulation is uneven. Before you sign anything, here are some areas you need to carefully consider:

• Be sure you know exactly what you're paying for. Get a detailed itemized price list and compare with other funeral providers before committing.


• Are the prices "locked in" or will an additional payment be required at the time of death?


• What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred, but often at an added cost.


• Are you protected if the funeral home goes out of business or if it's bought out by another company?


• Can you cancel the contract and get a full refund if you change your mind?


• If you do decide to prepay, get all the details of the agreement in writing, have the funeral director sign it, and give copies to your family so they know what's expected.

Other Options

There are other ways to set aside money for your funeral, rather than giving it to a funeral home. You can set up a payable-on-death or POD account at your bank naming the person you want to handle your arrangements as the beneficiary. With this type of account, you maintain control of your money so if you need funds for medical expenses or something else, you can withdraw it at any time. This type of fund is also available immediately at the time of your death without the delay of probate. And if you're concerned about Medicaid eligibility, check the laws of your state. Some states will exempt POD accounts if they're set up as irrevocable trusts.

Savvy Tip: The Funeral Consumer Alliance is a good resource that provides a variety of free online funeral planning publications (www.funerals.org) that are very helpful. They also offer an end-of-life planning kit called "Before I Go You Should Know" for $10. To order a kit, call 800-765-0107.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior" book. The articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070.