THE REVERE ADVOCATE – FRIDAY, APRIL 30, 2021 Page 13 Should You Prepay Your Funeral? Dear Savvy Senior, My wife and I have been thinking about preplanning our funerals now so our kids won’t have to later, but we would like to fi nd out if it’s a good idea to prepay. What can you tell us? Living on a Budget Dear Living, Planning your funerals in advance is defi nitely a smart move. Not only does it give you and your wife time to make a thoughtful decision on the type of service you want, it also allows you to shop around to fi nd a good funeral provider, and it will spare your family members the burden of making these decisions at an emotional time. But preplanning a funeral doesn’t mean you have to prepay too. In fact, the Funeral Consumer Alliance, a national nonprofi t funeral consumer protection organization, doesn’t recommend it unless you need to spend down your fi nancial resources so you can qualify for Medicaid. Here’s what you should know. Preneed Arrangements Most funeral homes today offer what is known as “preneed plans,” which allow you to prearrange for the type of funeral services you want and prepay with a lump sum or through installments. The funeral home either puts your money in a trust fund with the payout triggered by your death or buys an insurance policy naming itself as the benefi ciary. If you’re interested in this route, make sure you’re being guaranteed the services you specify at the contracted price. Some contracts call for additional payments for final expense funding, which means that if the funeral home’s charges increase between the time you sign up and the time you sign off , somebody will have to pay the diff erence. Here are some additional questions you should ask before committing: • Can you cancel the contract and get a full refund if you change your mind? • Will your money earn interest? If so, how much? Who gets it? • If there is an insurance policy involved, is there a waiting period before it takes eff ect? How long? • Are the prices locked in or will an additional payment be required at the time of death? • Are you protected if the funeral home goes out of business or if it’s bought out by another company? • What happens if you move? Can the plan be transferred to another funeral home in a different state? • If there’s money left over after your funeral, will your heirs get it, or does the home keep it? If you decide to prepay, be sure to get all the details of the agreement in writing and give copies to your family so they know what’s expected. If your family isn’t aware that you’ve made plans, your wishes may not be carried out. And if family members don’t know that you’ve prepaid the funeral costs, they could end up paying for the same arrangements. Other Payment Option While prepaying your funerals may seem like a convenient way to go, from a fi nancial point of view, there are better options available. For example, if you have a life insurance policy, many policies will pay a lump sum when you die to your benefi ciaries to be used for your funeral expenses. The payment is made soon after you die and doesn’t have to go through probate. Or you could set up a payable-on-death (or POD) account at your bank or credit union, naming the person you want to handle your arrangements as the benefi ciary. POD accounts also are called Totten Trusts. With this type of account, you maintain control of your money, so you can tap the funds in an emergency, collect the interest and change the benefi ciary. When you die, your beneficiary collects the balance without the delay of probate. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior. org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book. New owner could help push Northshore Road apartment project forward By Adam Swift A new owner could make a big diff erence for a proposed apartment project at 1540 Northshore Rd. Earlier this year, a proposal by DLM Realty to bump up the approved eight residential units with seven parking spaces to a project with 15 residential units and no parking spaces at that address was met with concern by several city councillors and neighbors. The new owner of the property, Charles Lightbody of Middleton, is proposing a plan with approximately the same number of units as in DLM’s plan, but with no expansion of the building itself. “The modifi cation deals with an internal change in the number of units, not an expansion of the three-story building that is there,” said Attorney Joseph Catoggio, representing Lightbody. “The application reduces the request from the prior owner from 15 units to 14 units. The proposal is in line with the current trend of residential construction which calls for smaller units that are close to public transportation.” Lightbody has met with Ward 2 Councillor Ira Novoselsky and neighbors to address concerns that were raised during the prior application process, Catoggio said. “Hopefully, we have addressed a number of the concerns, and we look forward to continuing the application in the zoning subcommittee,” he said. Novoselsky said the prior application was controversial, but he noted that Lightbody has already taken some steps to secure the property for the protection of the neighborhood. “We also had a neighborhood meeting with the immediate abutters who had concerns from the prior owner, and Mr. Lightbody has agreed to address every single item that the prior owner did not come through for, plus a few more items,” said Novoselsky. “It’s working out so far, and Mr. Lightbody is already addressing some of the dangerous situations that occurred, and he plans on starting [construction] after the appeal period if this is approved.” City Council President Anthony Zambuto moved the application to a future meeting of the council’s zoning subcommittee. During the application process for 1540 Northshore Rd., DLM Realty also brought forth another controversial proposal for 7-9 Dehon St. requesting a special permit to remove commercial units and add two more residential units to that property.
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