Author Topic: prepaid cremation  (Read 480 times)

solon

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prepaid cremation
« on: March 06, 2020, 04:28:39 PM »
I have an older friend who lost her husband in December. She had him cremated at a cost of $1,600. But now she tells me the price has gone up twice since then, and the current price is $2,200. So she locked it in by signing a contract to pay $2,200 plus interest over the next 10 years.

Is this a good idea?

She doesn't want to "trouble" anyone after she's gone. She has no descendants, so nobody will be troubled. She's not going to have much of an estate, if any. She has just enough Social Security and PERA (CO retirement plan) to pay her monthly expenses right now, but not much extra.

What if she dies penniless? Who would pay the cremation/burial expenses?

Mr. Green

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Re: prepaid cremation
« Reply #1 on: March 06, 2020, 05:05:58 PM »
The state would pay for what would likely be cremation. There'd be no burial or plot paid for. Not sure what would become of the cremated remains. They might do some type of communal disposal of the "ashes".

We just had my father cremated in September. The bare bones process of actually cremating the body was $1,100. We'd called around to numerous mortuaries and they were all about $1,000. The difference compared to the amount you mentioned could just be locality difference, or perhaps includes additional services like a memorial service at the mortuary. I'd be kind of surprised to see the cost go up unreasonably in the future because there's not much to the actual process of burning a body. No embalming is done with a cremation.
« Last Edit: March 06, 2020, 05:11:30 PM by Mr. Green »

spartana

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Re: prepaid cremation
« Reply #2 on: March 06, 2020, 05:21:37 PM »
Both my parents (divorced from each other) did this and in both cases it worked out well.

 One did it thru the Neptune Society and one through the Omega Society. It is basicly a trust set up/pre-paid to include pick up and delivery of the body from hospital to cremation place, all the paperwork including getting death certificates, cremation and dispersal of the ashes at sea and family can go onboard boat if wanted for a simple service with flowers, or just return the ashes to the family to do as they wish. When the person dies whatever the amount of money is in the trust, including accrued interest, will cover the costs. You can have add one if you or the deceased's family wants but not needed.

In our case it was a real blessing they set that up as it was just one phone call to the cremation place and they handled everything. Well worth it imho and something I and sister will do myself.

ETA I don't remember the costs off hand as they both set them up years ago but I think it was probably around $1000 or less plus accrued (tax free) interest.
« Last Edit: March 06, 2020, 05:27:41 PM by spartana »

Cranky

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Re: prepaid cremation
« Reply #3 on: March 06, 2020, 08:09:21 PM »
Caveat : my parents both had prepaid cremation plans, and then they both managed to die in different states than where they had the plans. There was a lot of paperwork to get partially reimbursed.

LaineyAZ

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Re: prepaid cremation
« Reply #4 on: March 07, 2020, 03:48:52 AM »
Another benefit is that prepaid cremation is not counted as part of someone's estate in order for them to qualify for Medicaid. 
In the case of my parent who needed nursing home care, but who needed to qualify for Medicaid to have it paid for, this was a recommended way to reduce the amount of cash she had on hand.   (as you probably know the asset limits for Medicaid are quite low).