Saving for Funeral Expenses!

freshfield017

Have just be having a discussion with my parents about funeral expenses!!!
My Dad is wondering whether to put some money into an ISA account to cover both his and my Mum's costs or whether to give the money to their local funeral directors who, in turn, will provide their funeral cover at todays prices.
Has anyone else come across this method, or have you any ideas?
Many thanks

dunstonh

Pre-paying funeral expenses benefits the funeral directors. What happens if you parents move away from the area covered by the funeral directors? What happens if they go bankrupt or cease trading?

Funeral expenses can be paid from the estate prior to any settlement so I wouldnt worry about it. Having funds in an ISA would be the better way IMO.

Paul_Varjak

You can get pre-paid funeral plans from Help The Aged:

http://www.georgehallandson.co.uk/helpaged.htm

It does protect you against rising funeral costs but I think you are basically choosing the type of funeral you want today, so it is somewhat inflexible, which is why I would not choose one.

I am not sure whether these products are regulated by the FSA or not but I think some providers to place the money into trust; I guess that the Help The Aged plan would fulfill any code of practice thay may be in place, should there be no FSA regulation.

However, given that the cost of funerals ahs risen more than both inflation and Building Society interest rates, they may be worth considering as you basically pay for a funeral at today's rates.

System

I would rather have the money invested in a good savings account. I dont have a lot in savings, but i do know, if i died tomorrow (or even if MrJudi or one of the kids died), i know i would have enough money to bury them and thats good enough for me. I dont like tying my money up when i dont have to.