Should you plan and pay for funeral in advance? Do you expect to need Medicaid?
Should you pre-plan your funeral, you'll need to decide whether to pay for everything now to lock in the price. You will also have to decide if Medicaid is a good idea for you, according to The New York Times in "Want to Plan for Your Death and Funeral? Here's How."
When you pay the funeral home in advance, you are essentially giving it a free savings account. The funeral home can save the money and earn interest on it. If you do not anticipate passing away anytime soon, you would be better off saving that same amount of money and earning interest on it yourself.
However, if you anticipate needing Medicaid to pay for long-term nursing home care, paying in advance for funeral services can be a good way to lower your assets, if done correctly.
An elder law attorney can answer any of your questions and advise you on making funeral plans and Medicaid decisions.
Reference: New York Times (Feb. 20, 2018) "Want to Plan for Your Death and Funeral? Here's How."