By Michael Kubasak

Q: "Some friends of mine have taken care of their funerals in advance. Is this a good thing to do? If you pay in advance, how is the money protected? What if I move to another state?"

A: Just as many people prepare a will or trust, many people also record their plans for cremation or burial in writing ahead of time. This is known as "pre arrangements," "advance planning" or "pre need." An independent study by The Wirthlin Company estimates that by 2007, 50 percent of people age 55 years or older will have made pre arrangements. Forethought Financial Services, a leading insurance company in funeral-cremation pre-planning, estimates that more than 6 million Americans will prearrange their funerals in the next 12 months.

More than ever before, people are planning in advance for every expected stage of their lives (e.g., raising a family, education, retirement) and for those things that might happen (e.g., fires, floods and automobile accidents). It makes good sense to plan ahead of time for the inevitable, too. The better you plan, the less the stress and the fewer surprises or disappointments for you and your family.

Planning ahead relieves your survivors of two critical issues: wondering what the deceased would have wanted done and if they did the right thing. There are sound emotional, financial and social reasons for making funeral arrangements in advance, such as:

•You can think through your choices about earth burial, entombment or cremation and consider what services are needed.

•Many people have preferences for certain events to occur or not to occur. By writing them down you are sure they will happen. For instance, you may want to choose the type and price of casket or the location in a cemetery. Arranging in advance also means you have the option of changing things in the future.

•Advance funeral planning complements your will or trust and ensures that important documents are organized and kept together.

•Planning ahead puts you in control of the expenses.

•It provides peace of mind. In an unhurried manner, you cover all the details, eliminate guesswork for survivors and reduce their stress.

Pre Arranging is gathering and recording data, such as the information for legal documents, signing authorization and release forms and recording your wishes for services, ceremonies and merchandise. Pre Funding is paying for the expenses ahead of time, in advance of need. Most funeral-cremation providers make both services available without charge for meeting with you. They are glad to answer your questions and explain your options.

When paying in advance, some important guidelines to keep in mind are:

1. Money should only be placed in a state-approved insurance plan, trust plan or an FDIC insured account.

2. You should be listed as the owner and person who maintains control.

3. If the funeral plan guarantees that expenses are "frozen" at today’s costs, (meaning the funeral will not cost you more in the future), it should be issued in writing on all of your documents.

4. Some plans permit paying expenses in installments, with a provision that if payments are current and death occurs, the balance of the payments are paid by the insurance company to the funeral-cremation provider. This should be in writing.

5. In the event you move, relocate or designate another funeral-cremation provider, 100 percent of all money paid should be transferable without penalty or cost to you.

6. Money placed in a bank or trust account should receive interest, and all interest should accrue in your account.

7. Money placed in an insurance product should have a "growth" factor attached to it, meaning the original amount of coverage should increase on an annual basis during your lifetime.

8. Receive a receipt for money paid, a copy of all documents and, if applicable, an insurance policy. All services and merchandise selected should be itemized on a contract.

9. Only do business with a provider who has a reputation for outstanding service and longevity in the community.

10. If the proceeds from the plan exceed the expenses at the time of need, your survivors or estate should receive a refund of the difference.

11. Be clear about any refund should you change your mind. A refund policy should be clearly stated in writing.

Most of us don’t like to think about death and avoid making important decisions in advance. Planning ahead is a helpful way to lessen problems and relieve those we care about the most. In a will, personal wishes regarding your property are recorded. Making funeral arrangements in advance allows you to express your values and state how you want to be remembered.

Every state has laws governing pre arrangement sales of funeral services and goods. For more information, consult your local funeral home, attorney, state funeral licensing board or the National Funeral Directors Association website at www.nfda.org.

Kubasak is a licensed funeral director, embalmer and certified crematory operator. He is a consultant and lecturer and can be reached by calling (702) 345-3212 or via e-mail at mike@kubasak.com.