Should you prepay for your own funeral?

Photo by Kerri Shaver | Unsplash.com

By Maurie Backman
Posted on November 25, 2025

Q: A good friend recently died and it made me wonder, should I prepay for my own funeral? Is it worth it to set up now while I’m in my 50s?

A: I’m sorry to hear about your friend. Sometimes it takes a loss to make us face our own mortality — and the costs that come with it.

Chances are, you’ve put a lot of thought into planning for different milestones during your lifetime — buying your first house, sending your kids off to college, and retirement. But it’s just as important to plan for what happens once you’re no longer around.

In the course of your estate planning, you might write up a will or put a living trust in place for an easier transfer of assets.

Another important aspect of estate planning you may want to consider is arranging your funeral ahead of time. That could mean choosing a location and providing detailed instructions to your loved ones about the type of service you want.

It might also involve paying for your funeral ahead of time so your loved ones don’t have to. Here’s what to consider.

The benefits of prepaying for your funeral

Beat inflation: The National Funeral Directors Association said that in 2023, the median cost of a funeral with a viewing and burial was $8,300. That will rise over the years.

“Funeral costs have historically increased 3% to 5% annually, so a $10,000 funeral today might cost $16,000 in a decade,” according to Phillip Reed, estate and asset protection attorney at Reed Law PLC. “My friend who lost his wife unexpectedly had a $36,000 funeral expense, which he had to pay within weeks of his wife’s passing.”

Avoid probate: Plus, Reed said, “Prepaid funeral plans bypass probate entirely, meaning your family isn’t scrambling for cash.”

Assets left to loved ones in a will have to go through probate, which means they could be tied up for months or even years, said Renee Fry, CEO at Gentreo, Inc.

But a funeral can’t wait months or years, which means your family may have to scramble to come up with the funds for a funeral.

“It’s a common misconception that monies left to your heirs in a will can be used right away to pay for one’s funeral,” Fry explained. “Given that so few of us have money on hand to pay for a burial and funeral, pre-need planning has become popular.”

Remove your family’s stress: Another benefit to prepaying for your funeral? It removes the burden of decision-making from grieving loved ones, Reed said.

“I’ve watched families argue over burial versus cremation, casket choices, and service details, all while emotionally devastated,” he said. “When you make these decisions yourself, you spare them that anguish.”

Drawbacks and pitfalls to consider

While there are benefits to prepaying for your funeral, there are some pitfalls.

Your circumstances may change: “One big issue with prepaying for your funeral,” said Reed, “is if you move or change your mind about where you want services held, transferring prepaid plans can be complicated and sometimes impossible. Some plans aren’t portable, meaning you could lose money.”

Allocating funds to your funeral in a different way, without prepaying for a specific location, is something you may want to consider.

What if the funeral home goes out of business?

“This can be solved by making sure your money goes into a trust or insurance product, not just directly to the funeral home’s operating account,” Reed said.

Reed cautions that insurance products can vary by state, so it’s important to consult with a professional to understand how this option might work.

Beware of Medicaid eligibility rules: Another issue that could arise if you prepay for your funeral, said Reed, is complications with Medicaid.

“Prepaid funeral plans, up to certain limits, are typically exempt assets that won’t affect Medicaid eligibility, but only if structured correctly,” he said. However, Reed said, “If set up correctly, this can be a smart estate planning move for those concerned about long-term care costs.”

Many ways to prepay

Funeral costs are only likely to rise over time, and tools like wills or even trusts may not give your loved ones access to money to pay for a funeral quickly.

“Even ‘simple’ estates can take six to 12 months to settle,” Reed pointed out.

One possible alternative to prepaying a funeral is using a life insurance policy with a named beneficiary. But even those payouts can take weeks, Reed cautioned.

All told, Reed calls prepaying for a funeral “a good option.” But you may want to consult a financial adviser or estate planning attorney to see if it’s a good one for you.