What is Pre-planning, or Pre-arrangement?
When you plan in advance, you are making choices now based on your wishes as to how your final arrangements will be carried out. Thus, you can reduce family concerns at the time of your death.
What do I need to do to pre-plan?
At your convenience, you can meet with a member of our staff to discuss your options and your preferences. When you make arrangements in advance, you’ll want to consider the type of funeral service and final farewell that you want. By making some or all of these decisions now, you give your family peace of mind, and also benefit financially.
What are the advantages of advanced planning?
There are many advantages when you take care of your final arrangements in advance. The most obvious benefit is financial, but there are a number of emotional benefits, too. When you make arrangements in advance you have a better opportunity to make informed choices. If you decide to prepay, you guarantee today's prices, and can take advantage of affordable payment plans. We can provide additional professional advice on pre-planning and prepaying.
What is the difference between pre-paying and pre-planning?
When you pre-plan, you do not need to pay for everything in advance—your estate can pay for the services at the rates being charged when your funeral is held. When your plan is complete, the funeral director will keep it on file until it is needed. However, if you pre-pay at the time you make your pre-arrangements, you can lock in today’s prices. We offer several affordable payment and investment options. We’ll be happy to discuss these options with you and help you make a decision that best suits your needs.
Where does the money go that I pre-pay into a plan?
Typically, 100% of the money you pre-pay will be used for your funeral service. Once we receive pre-plan money from you, we will deposit all of it into a trust or funeral life insurance, where it cannot be released to us until after the funeral you have chosen has been provided for you.
- Types of Trusts or funeral Life Insurance:
- Revocable: A Revocable Trust or Life Insurance is an account that any amount of money may be deposited into. At anytime, you may ask for this money and the interest or Cash Value it has made (you may be subject to a 10% penalty for funeral home expenses). At the end of the year you may receive a 1099 statement on which you must pay taxes on the interest as it is considered income.
- Irrevocable: An Irrevocable Trust or Life Insurance Policy is most commonly purchased by someone who eventually might need care in excess of his or her assets. Once purchased, it can be used for funeral purposes only. These accounts can be started for any amount and may be added to at any time. However, the state may require documents showing full payment. You may receive a 1099 at the end of the year showing total interest earned.
What if the cost of the services/products I pre-pay is greatly increased at the time of my death?
Once you pre-pay for the funeral services, the terms both parties agree to are permanently in effect. Colonial-Wojciechowski Funeral Home guarantees you will not have to pay anything additional for pre-paid services and merchandise. However, we cannot guarantee the costs Third Party items. We invest the funds on our behalf to cover future cost increases. For any later additions to the types of services, the funeral home cannot guarantee that the fund of money established by the purchaser will be sufficient to purchase those services. However, the interest earned by a fully funded account should offset any reasonable price increase.
What if your funeral home is no longer in business at the time of my death?
Because your money is held in a certified Trust or Life Insurance governed by state law, it will always be there for you, even if our business were to be purchased or go out of business.
What information will I need to provide on the On-line Pre-planning/Pre-arrangement Form?
This easy-to-use form should take only a few minutes to complete and will require contact information, and your site/property and memorialization preferences. You’ll have the option to select services, based on your preferences and the associated costs. View or complete the On-line Pre-arrangement Form now.