Page 67 - Senior Link Magazine Winter 2025 - Online Magazine

SENIOR RESOURCES

GLAD YOU ASKED:

by Lee Franks

enior Link Magazine asked sell the contract to you with a built of those you leave behind. On the
our readers to pose specific legal in premium to protect the business other hand, once the money is spent
Squestions to our eldercare expert, from the same risk you are seeking it probably will not be available if you
Mr. Lee Franks. This is the first of to avoid, and second, if providers in need it for something else.
multiple installments of his knowledgeable general misjudged the rate of increase,
responses. you would assume a greater risk that That last point hints at a situation
your provider might go out of business in which a preneed funeral contract
The questions and responses presented before the service was rendered. As is definitely on the menu–spending
here are for informational and the great economist Milton Friedman down assets to qualify for Medicaid
entertainment purposes and do not said, “There’s no such thing as a free assistance for long term care. A
constitute legal or financial advice lunch.” I have no idea if the cost of detailed discussion of Medicaid is
to anyone. A healthy portion of the specific funeral services are rising not appropriate here, but a person
content consists of little more than faster than inflation on average, and applying for assistance often must
the musings of someone with a law I do not know that cost protection is dispose of excess assets, and an
degree whose practice often includes guaranteed with a preneed contract. irrevocable preneed funeral contract
tangential exposure to the topics. If Obviously, a provider might have presents a practical opportunity to
something I say piques your interest a completely different spin on the convert cash into a “noncountable”
or appears to apply to a particular subject. asset that will very likely be used in
problem or subject pertinent to you, I the future.
suggest you seek appropriate counsel. Regardless of cost protection, there are
Anyone reading and, I hope, enjoying other factors
the content should understand that I to consider.
do not represent you unless we have Purchasing
met, and I have agreed to represent a preneed
you in a given matter. contract can
certainly make
Do you recommend buying preneed things easier for
funeral contracts? And are preneed your surviving
contracts effective to protect against family: they
generally increasing funeral expenses? do not have to
come up with
To respond to the second question the money
first, if funeral expenses merely keep themselves,
pace with inflation, then theoretically, and having
paying for it now is a wash. For made most of
example, if you figure that the funeral the decisions
you want would cost $10,000 today yourself, they
and you purchase a preneed for that will have less
amount, the provider presumably will to do in a time
invest the proceeds in a way that at of mourning.
least matches inflation. On the other Also, a preneed
hand, if you did not purchase the contract allows
contract but invested the $10,000 to you to choose
match inflation on your own, then you and pay for
would be in the same financial position the services
when the time came.
you prefer
If in fact, funeral expenses are which may
increasing faster than the inflation not necessarily
rate, then I would expect a couple match the
of things. First, the provider would preferences

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