Death is a topic many folks would rather not talk about. Yet, in our meetings, we’ve found death to be an area where clients want to know more. Specifically about costs.
And there are not a lot of answers.
The “business of death” is an area most folks get involved in just once in their lifetime. Perhaps sometimes twice in their lives. There’s often a lot of unknowns surrounding “how much do things cost” when a loved one dies?
Early in my career, I had presented and participated in seminars on estate planning. Looking back, I knew just enough about the “business of death” to be dangerous. However, I learned a valuable lesson when my own father passed away in 1993. It was time to put some of this estate planning knowledge to work.
I was not prepared.
I was stunned at the relatively high cost of death and burial in 1993. And the costs have only escalated since then. Here is a comparison between 1993 (when my father passed away) and today. The costs have more than doubled over the last 25-plus years.
If you have not participated in planning a funeral recently, be prepared. Because the costs do not end there.
My father was buried in a very crowded cemetery on Long Island. We wound up buying a plot in the secondary market. Yes, a secondary market exists in the cemetery business. Plots purchased years ago can be re-sold. The prices do not carry close spreads, like NYSE stocks.
By comparison, my wife and I were were interested in buying a burial plot close to home in Monmouth County. We found purchasing a plot would not be expensive. We spoke with a rep in a new cemetery where there are still areas they have not begun to use. Lots of space.
However, if you want your loved one buried in a crowded cemetery, be prepared to write a large check. This week I heard of a family buying a crypt for a loved one in a cemetery which I thought was “closed.” They are paying $60,000.
Also know that the business of “planning your estate” has also increased, like everything else in life and death. Thanks to our friends at FRED (the Federal Reserve of St. Louis), here is another chart displaying the cost of wills, estate planning and probate.
This is not a criticism of the costs related with the death of a loved one. Things like funerals, burials and lawyers cost money, and you get what you pay for. It’s a reminder to prepare for expenses when death occurs. The high cost of death is often a surprise for family members.