What’s The Best Way To Save For My Funeral?
One of my parents passed away recently and the funeral cost $30,000. My siblings and I had to scramble to get the money together and I don’t want my own children to shoulder that burden. What’s the best way to manage this cost ahead of time?
Lisa, Brisbane
At the outset, I suggest the best answer to your question is here: moneysmart.gov.au/paying-for-your-funeral
My preference is to either set up a specific savings account (a funeral bond or high interest saver) or pre-pay for a funeral through your local funeral director. Avoid funeral insurance, which can easily end up costing you more than a funeral would have.
The main thing to ensure is that the money is available when you need it, even if the estate is still going through probate. If the money is set aside in a specific funeral account, the executor can identify and direct those funds.
A lawyer can give you advice on how to approach this but make sure you talk to your children or the executor of your will about what is in your will. Communication is the best way to avoid family arguments.
By Kate McCallum, financial adviser and author of The Joy of Money; multiforte.com.au
Email questions to: hello@tonicmag.com.au
The information provided is general information and not personal advice. Tonic is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how the information we publish relates to your unique circumstances. Tonic is not Iiable for any losses caused, whether by negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by this website.
Want more Tonic delivered straight to your inbox? Subscribe here