How to Manage Funeral Costs

Losing someone close to you is difficult. And if you’re responsible for making the funeral arrangements, it can be hard to focus on prices and contracts. Hopefully, your loved one had enough money saved to pay for the funeral and its associated costs.

If this isn’t the case, the money for the burial expenses will come out of that person’s estate, which can include savings, property and other assets.

What happens when you can’t pay for a funeral?

The executor of the estate – who is named in the will – is responsible for making sure the costs are paid. This doesn’t mean that money must come out of his or her pocket. Those funds can come from any source, including donations from friends and family or a funeral loan.

It’s also a wise decision to ask the funeral home if they would be willing to create a payment plan for the funeral expenses. This allows the executor time to collect money from other sources.

However, if the funds can’t be raised for the funeral expenses, the solution is to contact the county coroner’s office. The executor will sign a form that acknowledges lack of funds to pay for the services and the county or state takes over and will pay for burial or cremation. In the case of cremation, you will be able to obtain the ashes, but there may be a fee.

Reducing financial stress

While a funeral can trigger financial stress, these strategies can help reduce the costs of the funeral, and allow you and your loved ones to honor and share memories of the person who passed.

1. Understand the costs of a funeral

According to the National Funeral Directors Association (NFDA), the average cost of a funeral with viewing and burial is $7,640. The total price of the funeral you’re planning could be different depending on the selections you make, but here’s a breakdown of the average funeral cost provided by the NFDA:

• Non-declinable basic services fee $2,195
• Removal/transfer of remains to funeral home $350
• Embalming $750
• Other preparation of the body $255
• Use of facilities for viewing $425
• Use of facilities for funeral ceremony $500
• Hearse $340
• Service car/van $150
• Basic memorial printed package $175
• Metal casket $2,500

Median Cost of a Funeral With Viewing and Burial $7,640

And remember, this is just an estimate of the starting costs. Things can get pricier if you start adding other expenses, like a vault – which could easily add another $1,500 to the final cost.

How can funeral costs be reduced?

Reducing the financial burden can bring some relief during this difficult time, and allow you to focus more on your grieving family, as well as your own mental and emotional well-being. The National Funeral Directors Association is an excellent resource for steps to take during this emotional time.

• Research funeral homes in your area before selecting one. Prices may vary, and some funeral homes will work within your budget.
• Embalming a loved one is optional. Choosing not to do so can save costs, but the ceremony will be closed casket.
• Direct burial is the least expensive option for most funeral homes. There is no embalming or visitation.
• Cremation is another choice to consider as it’s less expensive than a traditional burial since there’s no coffin, burial or headstone to pay for.
• Caskets can be expensive, but if you do your research, you can choose one that’s affordable. (Avoid gasketed caskets if a funeral home offers that service. The process, which ensures the casket seals more completely, will run you hundreds of dollars.)
• You don’t have to purchase a headstone or grave marker immediately. When it’s time to buy one, do some investigating to find the one that fits your budget.

2. Know your rights under the Funeral Rule

In 1984, the Federal Trade Commission (FTC) introduced the Funeral Rule to prevent funeral homes from pressuring people into buying goods and services they didn’t need or want. The rule also protects consumers from being overcharged and applies to arrangements made before or after a death occurs.

Under the Funeral Rule, you have the right to:

• Buy only the funeral arrangements you want
• Get price information over the telephone
• Get a written, itemized price list when you visit a funeral home
• See a written casket price list before you see the actual caskets
• See a written outer burial container price list
• Receive a written statement after you decide what you want, and before you pay
• Get an explanation in the written statement from the funeral home that describes any legal cemetery or crematory mandate that requires you to buy any funeral goods or services
• Use an “alternative container” instead of a casket for cremation
• Provide the funeral home with a casket or urn you buy elsewhere
• Make funeral arrangements without embalming

3. Comparison shop

Knowing your rights as outlined by the Funeral Rule unlocks your ability to price shop. When you visit a funeral home in person, you’ll likely receive a menu that lists out prices for all of their services and options. You can ask to hear those prices over a phone call as well.

To research several options at once, comparison sites like Parting.com can save you time. This site lets you search by zip code, and after you complete a short questionnaire, provides estimated costs for several funeral homes in your area. The prices may not be exact, but they can help narrow down your choices in a short amount of time.

4. Mix and match goods and services

As you research your options, remember that you’re not obligated to buy a preset package of services. Some funeral homes will work with you depending on your budget and let you customize the funeral based on what you can afford.

For example, you might find more affordable flowers at a local shop but need the funeral home to create the display. Or, you could have the memorial service offsite to save money but still require a hearse and service car. The final list of goods and services should be a mutual agreement between both parties.

Softening the loss of a loved one

Planning and budgeting to afford the costs of a funeral won’t lessen the blow of losing a friend or family member, but it can help ensure finances won’t be on your mind during an emotional time.

This article has been updated from its original posting on August 28, 2019. Matt Diehl contributed to the previous post.