When a loved one passes on, the process of handling all the legal aspects and planning a funeral can be burdensome. Here are a few tips to help you carry out all the procedures when this unfortunate event occurs.
The Funeral
The cost of a funeral depends on the location, transportation, and services you may want. In an ideal situation, your loved one would have purchased a funeral insurance policy, but if not, it would be wise to ask for a general price list from the funeral home. This will enable you to get an idea of all the costs involved so you can make a budget beforehand.
Some of the basic services include embalming, a funeral service, visitation, funeral home rental, hearse, car rental, and a metal casket. To add on to those expenses, you would also then need funds for cemetery expenses for a burial vault, burial space, and the opening and closing of a grave. All in all, the funeral may cost between $7,000 to $15,000 depending on the services you want. It should, however, be noted that because 90% of services done today have loved ones who failed to attend, the desire to have traditional funerals is declining. You may look into different options depending on your budget, such as a live streaming funeral service.
The Reception
When planning a reception, you need to consider your budget. The most pricey parts of a reception are the venue and food, which may add up to around $800. It is, however, possible to save money by having a reception at your house. You would then need to decide whether you would want catering or just finger foods. Other costs that may be incurred are for decorations.
Choosing Burial or Cremation
Of the two options, cremation is more affordable than a traditional burial. The average cost of cremation is around $3,000 while a burial costs around $10,000. This is because when a body is cremated you will need to pay for the cremation fee, the cremation casket, and the urn, as opposed to the numerous processes of a burial. Because of this, more people are now opting for cremation instead of the traditional burial.
Legal Expenses
This process is made way easier and affordable if the deceased had carried out all the required processes. These would include having a properly maintained written will or estate plan, a debt payment plan, funds to pay them off, and appointed key advisors such as an attorney, a life insurance agent, and a banker.
In some cases, your loved one may have been over the age of 65, or the Social Security normal retirement age where long-term disability policies will pay benefits. In such a situation, or if they had not carried out the required processes, you would need to make plans for how to handle your loved one’s estate. This involves distributing assets, canceling memberships and subscriptions, and paying their debts among other things. It is advisable to hire an attorney or a lawyer to assist you in carrying out all the legal procedures to ensure every step is carried out correctly and legally.
Protecting Family Assets
It is important to safeguard your family’s estate as well. The Coronavirus Aid, Relief, and Economic Security Act was signed into law on Friday, March 27, 2020. This $2 trillion disaster assistance package is aimed at helping people and companies during the enduring coronavirus pandemic and coexisting economic problems. Even with that said, estate planning experts advise people to have protective measures in place before they die and to appoint heirs to carry out these measures when they are deceased. If they have not done so, you are advised to name two or more executors to ensure that the deceased’s property is collected and distributed well.
After the death of a loved one, most families are often left unprepared to handle all the logistics that follow, especially the costs. The best way to lessen the burden on your family when you pass on is to plan. Sometimes it involves knowing basic money management tips or buying life insurance and having a written will.