How to Pre-Plan a Funeral and Save Money
Pre-planning a funeral is one of the most thoughtful — and financially savvy — things you can do for your family. Here's how to approach it.
What Is Pre-Planning?
Pre-planning means making funeral arrangements in advance, including selecting the type of service, choosing merchandise, and often pre-paying at today's prices. It differs from pre-paying, which involves funding those plans.
Financial Benefits
- Lock in prices: Funeral costs rise 3-5% annually. Pre-paying at today's rates can save thousands.
- Reduce impulse spending: Grieving families often overspend under emotional pressure. Pre-planning removes that dynamic.
- Medicaid protection: Irrevocable funeral trusts may be exempt from Medicaid spend-down requirements (varies by state).
- Budget clarity: Families know exactly what to expect — no surprise costs.
Steps to Pre-Plan
- Research 2-3 funeral homes and request their General Price List (required by the FTC Funeral Rule)
- Decide on burial vs. cremation
- Select specific services and merchandise
- Document your wishes in writing and share with family
- Consider pre-payment options: funeral trust, insurance policy, or payable-on-death account
Watch Out For
Not all pre-payment plans are equal. Ensure any trust is held by a third party, understand cancellation policies, and verify the plan is transferable if you move. Some states require 100% of funds to be placed in trust; others require less. Check your state's funeral board regulations.
Savings Potential
Families who pre-plan save an average of $2,000 - $4,000 compared to those making arrangements at the time of death. The emotional savings are arguably even greater.