Today we hear more and more about estate planning. And the more you read the papers, look at direct mail received at your door, or listen to the radio, the more you hear about people pre-arranging or pre-paying funeral expenses. One of Chapel Ridge Funeral Home’s caring staff would be pleased to meet with you at no cost or obligation either at the funeral home, in your home, or at a location that suits your need.

Increasingly, people are considering funeral pre-payment as a responsible part of effective estate planning, along with financial and tax planning, life insurance, RRIF’s and annuities, RESP’s, and updating your wills and powers of attorney.

Benefits of Funeral Pre-Payment

• Pre-paying funeral expenses helps “get your affairs in order.” It’s a responsible part of protecting your family’s future.
• Pre-paying can reduce the emotional and logistical burden of having to make arrangements – 70 to 75 decisions in the 24 – 48 hours following a death, at a time of great sadness and stress.
• Pre-paying eliminates the financial burden to your family.
• Discounts are available based on your age.
• Special tax regulations allow your prepaid funeral investment income to accumulate tax free.
• Pre-paying locks in your costs at today’s prices – funeral costs normally double every ten years or so – regular life insurance loses its value against these rising costs.
• If you pay in full, you may cancel or transfer (if you move) your prepaid contract at any time and get a refund of your payment plus interest, less a small cancellation fee.
• Funeral decisions made in advance, when everyone is calm and in good health are more likely to be more rational than those made at a time of upset.
• Planning ahead will make for better informed decisions.
• Pre-paying gives you a chance to think options and issues through carefully, discuss them as a family and come to a sensible consensus.
• The full value of a prepaid funeral is protected by the Government of Ontario so there is no risk.

Tips to Remember When Pre-Planning

• Be sure to talk through your funeral plans with those who care about you. Remember, the funeral is for them.
• Be sure you notify your family and executor of your pre-arrangements. Most often the will isn’t read until after the funeral, so don’t just put your wishes in your will.
• You can make funeral pre-arrangements at the funeral home or your own home, whichever is most comfortable for you.
• Choose a funeral home that meets all of your needs in terms of the facilities, the prices and your trust in the staff. But also choose one that offers a guaranteed price prepaid contract.

Options

• Pre-arranging a funeral means giving instructions to the funeral home about the type and details of the funeral you want – 90% of the decisions to be made and information to be collected can be done in advance. It does not involve any form of payment in advance, so none of the financial benefits, such as a guaranteed price or tax benefits, are achieved.
• Prepaying in full is an option that allows you to choose the funeral options that you want, and pay the full amount at today’s costs. The funds are held by a third party financial institution, and generate interest at a fixed rate until the time of death. Regardless of inflation or how much accumulates in the fund, your family is guaranteed not to have to pay more for the funeral you have chosen. If, however, there are excess funds at the time of the funeral, then by law these are returned to your family or estate.
• Time Payments allow you to pay your prepaid funeral expenses over periods from 1 to 15 years. You can choose to pay over 12 months in equal installments through direct withdrawal. There is no interest or penalty for choosing this option (under age 86). You can choose to pay for periods from 2 to 15 years by credit card or direct withdrawal. While paying over 2 years or longer adds to the cost (just as buying a car or anything else over time), there are several benefits. First you do not have to pay for it all at once – you can spread it over as many months as you are comfortable with, at a monthly payment that suits your budget. Second, from the time you begin payments, you are insured against premature death if you should pass away before the plan is fully paid (unless you are bedridden or have a terminal illness at the time of taking out the plan). Third, the younger you are, the lower the monthly payments.

People of all ages are considering pre-planning funeral expenses. For information or an appointment with one of our staff, please call us at Chapel Ridge at (905) 305-8508.