Funeral Estate Planning

Estate and Inheritance Tax Questions to Ask

After Grieving the Loss of a Loved One

When suffering from the grief and loss of a loved one, it can be the most painful and stressful time in our life. It’s important to surround our selves with close family or friends as a support system.

The experience is one that can seem like time is standing still because of the grief, but at same the time, it can be quite overwhelming and as if time were flying right past us. When someone we love passes away, there are so many details that need to be considered while grieving. That process in-and-of-itself can be painful. Funeral arrangements, memorial services, obtaining death certificates, and legal matters are all part of the details involved in losing a loved one.

Things like inheritance and estate tax issues don’t need to be addressed immediately. Focusing on our friends and family are obviously more important. But eventually the details will need our attention.

Helpful Considerations When Facing a Loss:

Is Life Insurance Taxable?

While life insurance proceeds are included in the estate, they are not taxable (as income) to beneficiaries. However, you should contact the life insurance company to understand the procedure to cashing in their policy. Typically insurance companies will require a claim form and death certificate. But generally, life insurance is not taxable to inheritors. (Click to learn more about burial insurance)

What is My Inheritance Tax Rate?

Inheritance tax will vary from state-to-state. Typically if the value of the estate that’s being inherited is high in value, your tax rate will be higher as well.

For example, tax preparers in Indianapolis, Indiana will tell you that Indiana’s inheritance tax system breaks the heirs or inheritors into three classes or groups. Systems in Pennsylvania are very different. For Indiana, each group has different rate schedules and exemptions. Here’s how this looks according to the Indiana Department of Revenue:

•  Class A – direct ancestor or descendant, stepchildren, direct descendant of a stepchild: $100,000 exemption.
•  Class B – siblings, descendants of sibling, spouse, widow or widower of your child: $500 exemption
•  Class C – anyone else excluding spouse: $100 exemption

Are Bank Accounts Taxable?

Revenue-producing assets like bank accounts and stacks are not taxable upon inheriting them. However, the income that these assets generate is taxable to the recipient.

What About Pensions and IRA’s

A person inheriting a pension or IRA is required to pay taxes on the amount received, as the decedent (person who is deceased) would have during their life. An IRA or similar fund can be rolled over tax-free into the beneficiary’s name and treat it as their own.

While things like estate and inheritance tax is, by no means, the most important item to address when we suffer the loss of a loved one, it is important to understand what is and is not taxable during these times. Estate and inheritance taxes can be burdensome and stressful, but in some cases, an inheritance is not taxable to you.

Estate lawyers are available to help guide us during times of funeral estate planning, but they can often be costly. Check with your tax preparer or attorney handling the estate as to what you need to know when sorting out inheritance and estate issues.

Consider Funeral Donations and End of Life Planning

Afterward…

Dividing Your Loved One’s Estate

A Guest Blogger Shares His Personal Story:

When my grandmother passed away, my mother was named as executor of her funeral estate planning and was left with a house full of memories and possessions to distribute. After she and her siblings divided those belongings that they wanted, there were still many items left. My mother didn’t feel right selling these things, so she donated everything, in order to help others in need.

Clothing and Shoes

Clothing items can be donated to second-hand stores, homeless shelters, or battered women’s shelters. There are often used clothing drives in the fall and winter, and coats, gloves/mittens, scarves and boots are especially important donations during this time.

Bedding

If these items are in good condition, homeless shelters will put them to use, especially in the winter months. Additionally, hospices can always use quality donations in order to make their patients as comfortable as possible in their final days.

Books, Videos and CDs

With budget cuts, many schools and libraries are unable to buy new materials as often as they would like, which negatively impacts their students and patrons. By donating to these establishments, you are helping your community and aiding in the education of others.

Dishes, Silverware, and Food-Related Utensils

Homeless shelters that cater to families are often divided into small apartments, complete with kitchens.  By donating to these organizations, you can help a family sit down to a home cooked meal, thus providing stability during a difficult time.

Knick-Knacks, Artwork, and the Like

These are often tricky to donate, as many are personal mementos or are considered clutter by others. Residents of nursing homes, and those suffering from a terminal illness, can often live in drab surroundings.  Therefore, items such as these can brighten their rooms and bring smiles to their faces.

Furniture

Craig’s List is a great place to find people in need of free furniture. When posting, be sure to include a photo, and request that prospective owners pick up the furniture. Be cautious when using sites such as these, though, and use common sense when allowing strangers into your home.

Used Medical Equipment

It is not uncommon to have used medical equipment left after a loved one’s death, especially in the case of a prolonged illness or severe injury. When left with a wheelchair, walker, shower chair, or other equipment, find an area hospice in need of your items. These are often nonprofit, and can always use quality donations.

The loss of a loved one can be a devastating time. The last thing you want to worry about is what to do with their possessions once they are gone.

However, with a little thought and end of life planning, you can make this a relatively painless process, and one that can be handled quickly and efficiently, so you can begin to move past your tragedy and start the grief and loss and healing process.

Courtesy of Joseph Baker

Four Key Guides to End of Life Planning

Our Personal Gift to You and Your Loved Ones…

Please Take Advantage of Our:

4 FREE Guides to Creating a Smart End of Life Plan

(Note: You can download, print, or save each guide below at NO COST)

Please Watch This Brief Video Explaining Why You Should Create Your End of Life Plan:

1. “Completing Your Family Record Guide“:

• Benefits of keeping all of your financial affairs in one place

• A complete list of key matters to have readily available

• Who can access and how often to update this information

2. “Guide to Knowing Your 3 Best Options to Pre-Pay Funeral Expenses“:

• PreNeed Plan – How this plan works, who it fits, pros and cons

• Final Expense Plan – How this plan works, who it fits, pros and cons

• Cemetery Pre-Purchase Kit – Burial Versus Funeral Pre-Planning

3. “Guide to Choosing a Will Versus a Trust“:

• The importance of creating an estate plan and how to start

• Easy-to-understand difference between a Will versus Trust

• Helpful ways to determine which is one is best for you

4. “Guide to Creating a Love Drawer”:

• Benefits of keeping all of your financial affairs in one place

• A complete list of key matters to have readily available

• Who can access and how often to update this information

See Exactly What a “Love Drawer” is – and Why It is So Valuable For EVERY Family:

A Personal Story From the Founder:

I would like to share my personal story to explain why this is so important…

Since I have worked as a Financial Advisor for nearly 25 years, part of my job is helping protect families against unexpected events that can cause significant financial and/or emotional difficulties. Life most Financial Advisors, I typically accomplish this by using products and strategies such as Life Insurance, Wills, Trusts, Estate Planning, Disability Insurance, Long-Term Care/Home/Umbrella Insurance, and more.

To be honest, I considered myself to be well-versed in protecting my clients…and even my personal family. However, everything changed for me when I lost my mother on Thanksgiving Day of 2008.

Losing a close loved one is, by far, one the most difficult experiences anyone can face in their lifetime. I remember feeling so disappointed that, as a Financial Advisor, I was never educated or trained about how to handle this situation in any way. I was so surprised to face the fact that I was totally unprepared. And I also remember feeling so disappointed that I was unable to answer the 3 most common questions nearly every family asks:

1. What do we do now?

2. Who can we turn to for credible help, advice, and guidance?

3. How do we get started?

What is One of the Most Valuable Lesson I Learned?

Looking back on this extremely difficult process myself, I suddenly realized it didn’t have to be that way. Over the years, there were countless opportunities for me to find the time to have this discussion with my parents. Every day I regret the fact that I did not take the time to talk about planning and preparing for this, and encourage them to simply document their preferences for “what they would want“. Every day I see my mothers remains in a beautiful urn, and yet I regret not knowing whether she is in the “right place”.

I fully understand that nobody likes to talk about death or dying, but the harsh reality is that we will all die some day. So I cannot encourage anyone reading this enough…every son, daughter, spouse, grandchild, or loved…to have this discussion…sooner versus later…since you never know what the future holds in store for us.

You Will NOT Regret This!

You will experience two meaningful results from this selfless act of love:

1. You won’t regret it – You will sleep better at night, and your family and loved ones will be forever grateful. This is a win-win!

2. You will be remember in a better way – Knowing this would be a time of great loss, you took the time to do something very special. You sent an everlasting message that showed how much you cared by easing the burden of so many difficult emotional and financial decisions.

The REAL Reason End of Life Planning is the “Gift of a Lifetime”:

Going through something like this helps you realize that every day is a gift. I guess that is exactly why they call it “the present“. Use “your present” day and time to build a plan that allows your loved ones to celebrate your life and be thankful for all of the great memories and times they were able to share with you.

Again, congratulations for taking this all-important step for you, your family, and all of your loved ones!  Below is the link that takes you to each of these 4 FREE Guides:

Four Key Guides to Your End of Life Planning Gift For Your Loved Ones

Christopher P. Hill, Founder
FuneralResources.com

How to Prepay Your Funeral Expenses…
And Why?

According to AARP (www.aarp.org), the average cost of a funeral today is approximately $10,000.  So by preplanning a funeral and creating an end of life plan, your are certainly doing a wonderful thing by helping to alleviate many of the funeral planning challenges.

Therefore, over 60% of people who are willing to selflessly take the time to create an End of Life Plan will also choose to prepay their funeral expenses.  By taking care of your funeral costs and expenses in advance, this is yet another added value.  Prepaying your funeral costs is another way of leaving behind a memory of how much you cared for your family and loved ones, rather than leaving them to deal with these financial challenges.

While you need to learn and understand the three most common ways to preplan a funeral, you should also be familiar with the various ways of prepaying your funeral expenses, since this is  one of the fastest growing and widely-accepted aspects of the funeral planning process.

Similar to preplanning your funeral, most financial professionals agree that prepaying your funeral expenses should be a standard topic of discussion when creating a financial plan and estate plan.

The most common and widely used strategies to prepay your funeral expenses are savings, life insurance, and funeral insurance (also referred to as burial insurance), mainly because they tend to be deemed the most reliable and readily available. However, there are several other finance advice strategies to consider when prepaying your funeral costs or expenses:

Savings

Although many people choose to set aside savings to pay for their end of life plan and funeral expenses, there are several reasons this does not always end up working out as originally planned. First, the savings can be depleted based on unexpected financial circumstances, such as health or financial issues. Second, these funds are not always readily available and liquid upon death due to the challenges and restrictions often found in estate planning. Third, the funds set aside can often be insufficient due to inflation and the rising cost of funeral expenses. Finally, it should be noted that savings are included in a part of one’s estate, and, thus, the taxable consequences can often come into play.

Life Insurance

Term Life Insurance is widely considered to be a flexible, simple, and affordable way to pay for your final funeral expenses. Although Term Life Insurance has a set term, or set number of years, it also has multiple uses in prepaying for your funeral. Because upon your death it becomes a liquid asset that is usually not part of your estate, it can be used for many things such as your funeral or memorial services, burial expenses, cremation, liquidity, and many other things, including debts or obligations.

In addition, there are some types of life insurance that allow the funds contributed to these policies (either in lump sum, monthly, quarterly, semi-annually, or annually) to grow and accumulate as a cash value that can be accessed if necessary. Therefore, these policies can not only be used for funeral expenses, but also for other financial planning options that may arise such as financial emergencies, and college.

Funeral Insurance

Funeral insurance is an insurance policy which is specifically designed to cover any costs or expenses which are directly related to your funeral. If you purchase one of these policies, one of the options you have is to determine exactly which funeral costs or expenses are to be covered, such as funeral flowers, burial plot, grave marker, and much more. Another option you have is for the policy to be paid out in a single lump-sum, which can be used to cover your pre-determined costs or expenses, or simply help your loved ones financially as they plan for you. There are many insurance companies that offer funeral planning packages, and certain funeral homes or funeral companies also offer funeral insurance policies.

PreNeed Trust Agreements

Another alternative to prepaying your funeral is to consider a PreNeed Trust Agreement to pay for your costs or expenses. Generally speaking, these Trust accounts are typically funded with monthly payments that are invested in a fund which is designed to grow over time. Although a Trust account is designed to provide the potential for protection against inflation, it is not guaranteed to do so.

Get Help

Although the large majority of the funeral industry will tell you that most funeral costs can range anywhere from $5,000 – $10,000, it is very common for funerals to cost much more or maybe even less.

Also, as with any important financial decision or investment, there are many advantages and disadvantages to each of the options mentioned above. Before choosing a policy, it is important to consider many things, including but not limited to your age, health, financial status, objectives, liquid assets, tax issues, estate tax issues, family needs, etc.

In summary, although nobody likes to think or talk about dying, it is one of the facts of life we all must eventually face. If you are trying to build a successful financial plan, the only way you can be sure your plan works smoothly and efficiently is to be proactive about your planning process. This is particularly true and necessary when creating a proper plan of succession, and everyone should consider including an end-of-life plan.

Please consult with your attorney or financial advisor before applying or purchasing any of these policies, pay close attention to your specific state requirements, and also the financial strength and claims paying abilities of each company, funeral home, etc.

End of Life Planning

Your Family-Focused Gift of Love

Like so many families, when we suffered the loss of my mother last year we faced the difficult decision of what to do next. Because we were never willing to accept this as a possible outcome, nor did we think about planning in advance for this incomprehensible loss, we had no idea where to begin or who we could turn to.

Most people tend to overlook one of the greatest gifts you will give your family, which is properly preparing them for the inevitable. At best, you might have started your estate planning process by creating and choosing a Will or Trust.

However, the harsh reality is that approximately over 70% of Americans have no form of estate plan. So by having a will or Trust, you have clearly taken a step in the right direction toward preplanning your future financial wishes. The problem is, this form of planning fails to accomplish the most important task, which is addressing your family’s immediate concerns.

The person, or in most cases people, responsible for taking care of your final arrangements are usually forced to make extremely important decisions, as well as major financial purchases, within a small time frame…usually within approximately 48 hours after your death. Of course, you cannot expect to fully alleviate the emotional and financial stresses of your loved ones during such a difficult time, but you can help them tremendously by having a plan that outlines your funeral wishes.

Most financial professionals are realizing that an integral part of a sound financial and estate plan is taking care of your funeral services ahead of time.  To preplan a funeral gives you the ability to choose your method of disposition, the exact type of services you want, and allows your family to focus more on things such as grieving and recovery. In addition, preplanning is also a good thing for you because it allows you to make extremely important decisions through a calm and clear thought process. Emotionally, it is much more likely that you will create a more rational and logical end-of-life plan.

When preplanning your funeral, here are several general guidelines to begin your preplanning process:
* Visit various funeral homes and interview multiple funeral directors
* Choose a funeral home and director where you think your family would be most comfortable
* Consider bringing family members with you during this selection process
* Be aware and informed of bereavement entitlements such as veterans, unions, fraternities, etc.
* Consider religious and moral convictions, and discuss them with your family
* Determine your method of disposition (burial, cemetery, entombment, cremation, etc.)
* Plan your ceremony considering things like casket viewing, religious aspects, who should be included, etc.
* Itemize your costs
* The Federal Trade Commission offers a free funeral planning guide titled “Caskets and Burial Vaults” (202-326-2222) which has made it easier for consumers to comparison shop.
* The FTC Funeral Rule requires funeral directors to give pricing information over the phone, as well as provide you with a readily available General Price List if you visit them in person. This FTC Funeral Rule also allows you to purchase caskets, which are the single largest funeral expense, from outside vendors without the threat of a carrying charge.

What About Paying For Funeral Expenses In Advance?

Although planning your funeral arrangements in advance may help alleviate many of the details, prepaying (also known as prearranging or a PreNeed Plan) for your funeral services is a way of taking care of the actual expenses.

Prepaying your funeral or cremation is one of the fastest growing, and most appreciated and accepted aspects of funeral planning. Similar to preplanning your funeral, paying your funeral expenses in advance is also becoming widely accepted by many financial professionals as a solid piece of a sound financial and estate plan.

When prepaying your funeral plan, the most common and widely used strategies are savings and life insurance, mainly because they tend to be deemed the most reliable and readily available. However, there are several other strategies to consider when prepaying your funeral costs or expenses:

Savings

Although many people choose to set aside savings to pay for funeral expenses, there are several reasons this does not always end up working out as originally planned. First, the savings can be depleted based on unexpected financial circumstances, such as health or financial issues. Second, these funds are not always readily available and liquid upon death due to the challenges and restrictions often found in estate planning. Third, the funds set aside can often be insufficient due to inflation and the rising cost of funeral expenses. Finally, it should be noted that savings are included in a part of one’s estate, and, thus, the taxable consequences can often come into play.

Life Insurance

Term Life Insurance is widely considered to be a flexible, simple, and affordable way to pay for your final funeral expenses. Although Term Life Insurance has a set term, or set number of years, it also has multiple uses in prepaying for your funeral. Because upon your death it becomes a liquid asset that is usually not part of your estate, it can be used for many things such as funeral, burial, cremation, liquidity, and many other things, including debts or obligations.

In addition, there are some types of life insurance that allow the funds contributed to these policies (either in lump sum, monthly, quarterly, semi-annually, or annually) to grow and accumulate as a cash value that can be accessed if necessary. Therefore, these policies can not only be used for funeral expenses, but also for other financial planning options that may arise such as financial emergencies, college, etc.

Funeral Insurance

Funeral insurance is an insurance policy which is specifically designed to cover any costs or expenses which are directly related to your funeral. If you purchase one of these policies, one of the options you have is to determine exactly which funeral costs or expenses are to be covered, such as flowers, burial plot, grave marker, and much more.

Another option you have is for the policy to be paid out in a single lump-sum, which can be used to cover your pre-determined costs or expenses, or simply help your loved ones financially as they plan for you. There are many insurance companies that offer funeral insurance packages, and certain funeral homes or funeral companies also offer policies.

Pre-Need Trust Agreements

Another alternative to prepaying your funeral is to consider a Pre-Need Trust Agreement to pay for your costs or expenses. Generally speaking, these Trust accounts are typically funded with monthly payments that are invested in a fund which is designed to grow over time. Although a Trust account is designed to provide the potential for protection against inflation, it is not guaranteed to do so.

Take the First Step Today

In summary, although nobody likes to think or talk about dying, it is one of the facts of life we all must eventually face. If you are trying to build a successful financial plan, the only way you can be sure your plan works smoothly and efficiently is to be proactive about your planning process. This is particularly true and necessary when creating a proper plan of succession, which I firmly believe should include an end-of-life plan.

Christopher P. Hill, Founder

Helpful Considerations Coping with Terminal Illness

No one wants to talk about death or dying. Nor do they want to think about planning a funeral for someone they love, especially if they have not passed. Although extremely difficult, planning the funeral arrangements of a loved one who has been diagnosed as terminally ill is one of the best decisions you can make. However, we strongly encourage you to seek professional help!

When you combine the death of someone you care for with wanting to make the right decisions, especially given the fact that you have a limited amount of time to attend to all the details, it usually leaves many families feeling overwhelmed.

Our Funeral Advisors, Family Counselors, and Funeral Directors can help answer some of the more common, and more difficult, questions that people have about funeral planning.  They can also help guide you to become empowered by providing you with the information and resources you need…and deserve…to know.

Your loss is hard enough to deal with, and the planning shouldn’t be. At your time of need, our nationwide network of pre-screened Funeral Advisors/Directors/Counselors are here to both educate and assist you in making the best possible decisions.

Three Common Situations

There are three common situations where families need funeral information, guidance, and support:

1. A loved one has recently passed:

One of the best ways to reduce the stress and pressure involved in funeral planning is to make sure you’re well prepared. This involves being able to access helpful information, people, places, and resources…and it helps to start with a plan. This website is solely designed to help you find complete details regarding everything you will need to take care of when funeral planning. Our goal is to help you organize this process and ensure educated and clear decision-making, as well as provide access to pre-screened funeral homes and professionals.

2. A loved one has been diagnosed as terminally ill:

There is usually a tremendous amount of chaos surrounding funeral planning, especially when the loved one in question has been diagnosed as terminal. At such a time, you will likely be overcome with grief and need someone slightly more removed from your loved one to act objectively and handle the many options and responsibilities of planning a funeral in advance.

Key considerations when faced with a terminal illness:

a) Review the Will of your loved one to learn of any special or unique arrangements they might have in place. The goal here is to find any plans or wishes regarding their end-of-life plan, as well as to see if they might have accomplished any preplanning.

b) If established, be sure to review their Living Will and Advanced Medical Directives. These documents can become extremely important in the event certain difficult health circumstances arise. The goal of these documents is to ensure their last wishes are carried out by the people closest to them in the event they become physically or mentally incapable of making these choices on their own.

c) If everyone mutually agrees that the Will is not going to be discussed or reviewed until after death, we strongly suggest that you consult with a funeral estate planning attorney to review the Will and identify if there are any special instructions concerning their last wishes.

d) Inform certain key people of what likely lies ahead including immediate family, friends and relatives, co-workers, insurance companies, a family doctor, the Cemetery or other burial place, other organizations such as churches, social clubs, etc.

3. Preplanning your end-of-life plans and preferences

In the past, planning for your death in advance was considered to be taboo. Today, preplanning a funeral and the accompanying arrangements is a popular decision and should be considered an important part of planning for the future. There are many reasons to consider preplanning a funeral. The most important one is that it takes away from your survivors the emotional and financial pressure of making a decision under very difficult circumstances. In addition, prearrangements also let you choose exactly how you want to be memorialized and allows for personal preferences in all aspects of the funeral service. Not only is this becoming a widely accepted part of a sound comprehensive financial plan, but we firmly believe this is one of the greatest gifts you can leave your loved ones.

A Personal Story That Is Not Easy To Share…

I would like to ask you to please spend some time reading this personal story of mine.  I am FULLY confident that you will find something in this story…some special message…that will make your life better…and end up being worth a few minutes of your time.

When it comes to financial planning, I will spare you the boring details about the importance of have a plan in place for the unexpected, using things like Umbrealla Policies, Life Insurance, Wills, Trusts, Estate Planning, Disability Insurance, Long-Term Care Insurance. etc.

In the past I might have boasted about how well-versed and experienced I am with creating strategies to protect my clients…and my own family…against the unexpected.  But the truth is, things in my life have changed a lot since I lost my mother on Thanksgiving Day of 2008.

Looking back…

Since nobody in my family had ever really dealt with losing a “close” family member before, we had no idea what to “expect”.  In fact, we didn’t know and we didn’t plan for this outcome in any way, simply because we never once expected to be in ”that situation”.  We never talked about what would happen “afterwards” because talking about her death was an unspoken, unlikely, and unacceptable outcome that never crossed our minds.

I can vividly remember feeling so disappointed that I didn’t even know what to do next, or who to turn to.  I also remember realizing that I didn’t know what my mother would have really wanted with regards to the many details of her end-of-life plans and preferences.  Why?  Because I had the courage to ask.  It was simply never the right time.

When she passed, it was all so confusing and awkward that I honestly don’t even feel comfortable talking about it.   But what I can talk about is what happened ”afterwards”.   My next memory is that right about the time when the enormity of the situation was just starting to sink in, we were sitting in a local Funeral Home, surrounded by various types of caskets and urns, reviewing a two-sided legal page (General Price List) which is filled with dozens of funeral planning options…all of which probably add up to well over $200,000.

Now please keep in mind that the last thing in the world any of us wanted to do was think about all of these kinds of options, much less have to make decisions regarding any of the financial aspects.

Things I bet you never thought about…

Here is a list of some other challenges we faced that, I would bet most of you have never thought about either.  Keep in mind that all of these decisions are usually made by most families, including ours, with little or zero education and guidance:

• How do we determine which Funeral Home, Cemetery, or Funeral Director?
• How do we arrange and notify family members and/or loved ones who live out of town?  Who contacts who?
• Trying to determine exactly what type of memorial service is most appropriate?  Do you celebrate a life?  Do you mourn?
• Knowing whether there was a preference to be cremated or buried?
• Choosing among many different types of caskets or urns?
• Where should the body or ashes finally rest?
• How would you want your plans and preferences to work with regards to your religion?  Do you know which Church?  Which Priest?
• Who should be invited, and how do you locate all their names and numbers?
• Who will pay for these funeral expenses, and how will this be paid for?
• Who will give a eulogy at the memorial service?  Who will do a reading?
• What is funeral etiquette with regards to dress, time, date, day, etc.?
• Will there be a gathering after the memorial service?  If so, who should be invited?
• How do you place an obituary? What should it say?  Who should handle this?
• Do you want to request flowers or donations?
• Choosing among pictures, music, videos, and much, much more…

So Here’s My Take…

They say “everything happens for a reason“.  Well, even though there will never be a valid “reason” to lose a loved one in my mind, I can say that this experience opened my eyes to a lot of things that have previously gone unnoticed.   And as time passes, the one thing in particular that is becoming crystal clear is the fact that in all my years of financial education and training, I have never once heard someone so much as talk about how to help the families we serve by encouraging them to create an end-of-life plan.

Well my friends, it is time for change.  Together with many of the finest Association and Organizations in the Funeral and Financial Planning industries, I am going to be speaking LOUDLY, BOLDLY, AND CLEARLY about this need for change when it comes to building a complete financial plan.

I am also getting ready to release something I’ve worked very hard to create, which you can see here:

3-Step Guide to Creating a Smart End-Of-Life Plan

In the financial planning industry, it is very rare if financial advisors can ever use that dangerous word “guarantee“.   And if we do, it is manadatory that we accompany any “guarantee” with prospectus containing extensive legal disclaimers and warnings!

However, when you look at this from a real-life experience like I now can, financial advisors actually have something that we can GUARANTEE EVERY CLIENT…which is that some day we will all die…and regrettably, sometimes we will die MUCH sooner than anyone could have ever imagined or planned.

Each of us has TWO CHOICES…

1. CONTINUE TO DO NOTHING

Don’t plan for this guaranteed outcome in any way, knowing that you will be leaving your family to suffer through all of these unnecessary emotional decisions and financial pressures…and many others.

2.  PLAN TODAY

Put in the time and effort that your family DESERVES and create a sound and comprehensive End-of-Life Plan.

My mission going forward…

My goals is to take my personal experience and learn from it, and turn it into a positive experience by helping families become more educated, empowered, and most importantly, well-prepared.  I want to make my mother very proud one day as she looks down and sees that her never-ending and selfless love continues to live on forever.

Like many of the best things in life, End-Of-Life Planning is not fun to talk about or think about, and it’s certainly not easy to plan for either.  But there is an old saying that holds true here, which is;

“The difference between failure and success is largely determined by the amount of time and preparation you put into planning for the future.”

After all, what better gift can you leave your family than showing them that you selflessly made time, you took that extra step, and you sacrificed a small part of your life to:

Prove your love by putting THEIR best interests before yours…or put another way, one of your their last memories will be knowing that your main concern was doing everything possible to make THEIR lives better.

The one thing I can assure you from my own personal experience, it is this kind of true  and unselfish love that actually makes YOU the real recipient of this great gift!

I think watching this video should help too…

Christopher P. Hill, Founder

http://www.funeralresources.com

A Gift That Lasts a Lifetime!

Sometimes I feel as if I am the only person in America who is speaking about one of the most important topic…and yet one that almost nobody is teaching, practicing, or implementing into family planning:

“End-of-Life Planning Should Be a STANDARD Piece of a Comprehensive Financial Plan!!”

If you really think about it, the last thing any of us want to do is talk about…or think about…is planning a funeral. But the unfortunate truth is, some day every single one of us will be forced to deal with this issue, hopefully later versus sooner.

But here is the real kicker…if we know for a FACT, with absolute certainty, that we are all going to die some day, why is it that most people are NOT talking about this? Why are financial planners NO T learning the best ways to do this? And at the very least, documenting our End-Of-Life plans and preferences for our loved ones?

My LIVE Interview with FOX News last week should explain this better:

Please watch this two-minute video about:

Why Everyone Family Should Create a “Love Drawer“

Financial Planners Should Encourage End-Of-Life Planning!

Just so everyone reading this knows, in addition to being the Founder of our website, I have worked as financial planner for over 23 years and currently own my own Wealth Management practice.

I mention this only because the sad truth about the financial planning industry is that it largely overlooks and/or ignores End-of-Life Planning and Pre Need as an all-important addition to a financial plan. To prove this point, in all my years of studying, training, attending classes, and getting licenses and certifications, I have never once heard some talked about this subject, nor was I ever educate about.

Think about this. Has your financial planner discussed this with you? Does your financial plan include your plans and preferences, and maybe even a plan where you have pre-arranged your funeral expenses? I bet most of you don’t, and the worst possible time to be having this discussion is AFTER THE FACT!

To share a personal experience, one of my toughest days was losing my mother to cancer on Thanksgiving Day of 2008. After going through this entire experience, what I found to be true with each of our family members, including myself, was this… just about the time when it starts to “sink in” that your loved one is really gone, and your emotions really begin to elevate, the next step you are faced with is going to visit a Funeral Home and begin planning a funeral. For most families, this is probably the last thing they want to be doing at that time!

A Small Sample of Some of the Funeral Planning Details and Challenges:

• How do you transport the body, where do you tranport it, and how soon?
• How soon afterwards should the service be?
• How do you determine which Funeral Home, Cemetery, or Funeral Director?
• What if they live out of town?
• Sitting down with a Funeral Director to review all the details and options
• Try to figure out what your loved one “would have wanted”
• Making some incredibly difficult financial decisions
• Trying to figure out what type of memorial service your loved one “would have wanted”
• Did they want to be cremated or buried?
• Choosing among many different types of caskets or urns
• Where did they want their body or ashes to be placed?
• How do you coordinate this with your religion/Church
• Who should be invited, and how do you invite them?
• Arranging travel and accommodation plans for out-of-town guests
• How will this be paid for?
• Who will speak at the memorial services? Which songs and prayers do you use?
• Do you have an gathering afterwards?
• How do you place an obituary? Who does this?
• Do you want flowers or donations?
• Arranging programs, sending “thank you” cards, and much more…

Another HUGE benefit to creating an End-of-Life Plan is the fact that, in addition to saving your family from going through all these emotional challenges and tough decisions, this thoughtful plan could very likely save your family thousands…or even millions…of dollars. The reason why is you have to remember that when someone passed, some of the financial issues that tie directly or indirectly with the funeral planning process are financial matters such as estate taxes, death taxes, capital gains taxes, income taxes, insurance policy proceeds, investments, real estate, bank accounts, and more.

A wise man once said, “The difference between failure and success is largely determined by the amount of time and preparation put into preparing for the future.” When putting together a sound and comprehensive financial plan, nothing could be further from the truth!

The Importance of Funeral Estate Planning for Your Family

Why is the Difference Between a Will or a Trust?
Which One is Best For You?

Wills – Who Should Have One?  Why?

The sad truth is that most Financial Advisors and Estate Planning Attorney’s will tell you that approximately 70% of Americans die without a Will, also known as a Last Will and Testament. In my opinion, this is totally unacceptable! Why? Because I am fully confident that most of us:

• Truly love our family and loved ones
• Would prefer not to place any unnecessary or additional burden on our loved ones during a time of terrible emotional loss

Please allow me to explain why having a funeral estate plan is so important. Should you pass without so much as a Will, the unfortunate reality is that state law will determine how your property is distributed, as well as take control of your estate if you should you become disabled or incompetent.

The Statute Called “The Law of Intestate”

The best way I have found to describe intestate is simply; “having a lawsuit with your state of domicile over the management of your estate”. Put another way, it will not be you or your family who ultimately decides what happens to your assets, your children, and your financial legacy…but rather your state, the government, and your least favorite uncle…Uncle Sam.

I think it is safe to say that your personal wishes for the disposition of your money, children, estate, well-being, and how you want to be remembered would not be exactly the same as that of your state or local government. Therefore, dying without a Will is going to put your family through an extremely difficult, time-consuming, and expensive ordeal…at a time when they should be focusing on celebrating your life and the wonderful memories you’ve left behind.

So I think you can reasonably conclude that I firmly believe that everyone, regardless of your net worth, marital status, or age, should have a fully completed and executed Will!

Why? Creating a Will accomplishes two extremely important things for both you and your family. First, it helps protect you against scenarios in the event something happens unexpectedly such as a disability, incapacity, severe accident, coma, amnesia, etc. Second, as I mentioned above, it becomes one of the greatest gifts we can give our loved ones by making this difficult period easier, less emotional, time-consuming, expensive, and uncertainty.

Trusts – Also Know as Living Trusts:
Why Would Someone Choose a Trust vs. a Will?

Most Estate Planning Attorneys will agree that a better and more useful funeral estate planning tool is using a Trust, also known as a Revocable Living Trust. One of the most common questions most families ask is “What are the advantages of creating a Trust versus a Will”? Well, although a properly structured Will is a “must-have”, one of the biggest disadvantages with having a simple Will is that every Will must go through probate.

What is Probate?

Probate is a court supervised procedure by which the court ensures that the assets governed by your Will are valued properly, the debts of your estate are paid off, and the remaining assets are properly distributed to the persons named in your Will.

The probate process is typically a negative experience, to say the least. Here’s why:

• It is expensive. Legal and executor fees and other costs must be paid from your estate before anything can go to your heirs. The costs are usually estimated at 1-5% of the gross value of an estate (before debts are paid).
• It takes time. Often 1-2 years or longer, depending on your state. During this time, assets are usually frozen and nothing can be distributed or sold without the courts approval. If your family needs money to live, they may have to ask the court for a living allowance, which the court may or may not approve.
• Your family has no privacy. Probate files are open to the public, so anyone (including a business competitor) can see what you owned and whom you owed. This knowledge can also invite disgruntled heirs to contest your Will.
• Your family has no control. The probate process controls, and it can be very frustrating for your family to have to pay for the court to tell them who gets what money and when. This frustration very often leads to family feuds, disputes, and family members may even choose to contest the Will.

So as you can see, probate can be a very emotional and difficult process. If you ask anyone who has been through the probate process (like my father), they will very likely tell you it is something you want to avoid at all costs if possible.

That is why many families choose a Trust, also called a Revocable Living Trust. A Trust, if drafted by a seasoned Estate Planning Attorney, can be a comprehensive document that will allow you to avoid many of the challenges when handling a deceased estate, such as:

• Avoid the probate process
• It is extremely hard to contest
• Can potentially reduce or eliminate estate taxes
• Will preserve your privacy
• Expedite the distribution of your estate
• Allows parents of small children (like myself) to give specific instructions to the Trustee or Guardians as to when to make distributions to the children, what they can use the money for, and at what ages to begin letting the children have control over some (or all) of the monies
• Many other challenges such as special needs, special instructions, multiple marriage situations, etc.

So Which Is Better…A Will or a Trust?

The reality is there is no exact answer to this question, simply because either a Will or a Trust can be deemed as most effective, but largely depends on each families personal situation is unique. Therefore, as with any decision that is extremely important to your financial future, the best way to make the right choice is to seek the help of qualified and credible Estate Planning Attorney who can help you determine whether a Will or a Trust makes the most sense.

One last suggestion that is very important is making sure you work closely together with both your Financial Advisor and Estate Planning Attorney when determining your most appropriate wealth transfer strategy. The reason why this is so important is because you need to ensure that, whether you create a Will or a Trust, this document is not only established correctly, but also that it is properly coordinated and integrated with the rest of your comprehensive financial plan.

I cannot encourage you strongly enough to be proactive, and take the first steps towards completing this necessary part of your financial and funeral estate planning.

Personally, I am proud to say that my family and I done our Estate Planning, as well as coordinated it with our comprehensive financial plan.  This helps me sleep better at night knowing I have created this all-important gift for my family…and I truly wish the same for you!

All my best, and Happy New Year!
Christopher P. Hill
Founder, FuneralResources.com
www.funeralresources.com