An Irrevocable Burial Agreement: What You Need to Know
Planning for our final arrangements is important, not just for ourselves, but for our loved ones as well. One option that many people consider is an irrevocable burial agreement. This type of agreement can help ensure that your wishes are followed and your family is not burdened with unexpected expenses.
What is an Irrevocable Burial Agreement?
An irrevocable burial agreement is a legal contract between you and a funeral home or cemetery. It guarantees that funds set aside for your funeral and burial expenses will be used for that purpose only. Once the agreement is signed and funds are deposited, they cannot be withdrawn or cancelled.
Why Consider an Irrevocable Burial Agreement?
There are several advantages to an irrevocable burial agreement. First, it allows you to prepay for funeral and burial expenses, which can relieve your loved ones of financial stress during an already difficult time. Additionally, it ensures that your wishes are followed, as you can specify details such as burial or cremation, type of service, and choice of cemetery. Finally, an irrevocable burial agreement can protect assets from being counted as part of your estate, which can be beneficial in terms of Medicaid eligibility.
How to Set Up an Irrevocable Burial Agreement
Setting up an irrevocable burial agreement is relatively simple. You’ll need to choose a funeral home or cemetery and work with them to create a contract that details your wishes and the funds you’ll be providing. Typically, you’ll be required to make a lump sum payment or set up a payment plan over time. Once the agreement is signed, the funds will be deposited into a trust or other account that is managed by the funeral home or cemetery.
Things to Consider
Before setting up an irrevocable burial agreement, there are a few important things to keep in mind. First, make sure you fully understand the terms of the contract and how the funds will be managed. Also, consider the potential risks of a contract that cannot be cancelled or modified. Finally, it’s important to shop around and compare prices and services offered by different funeral homes and cemeteries.
In conclusion, an irrevocable burial agreement can provide peace of mind for both you and your loved ones. By prepaying for funeral and burial expenses and specifying your wishes, you can ensure that your final arrangements are carried out according to your wishes, without causing financial hardship for your family. Be sure to carefully consider the terms of the contract and choose a reputable funeral home or cemetery to work with.