We’re exploring why families choose to pre-plan and what to expect during a pre-planning meeting in a series of blogs.  Another question people often have is how pre-planning fits into their broader financial life.

Whether or not you’re receiving a tax refund this year, spring’s arrival often inspires a reset. Just as the natural world begins a new cycle in spring, it can also be a good time to reset financial plans and think ahead. “It’s a time when people are already talking to financial professionals and reviewing their plans,” says Ron of LifeSource. For some families, this includes conversations about end-of-life planning. 

End-of-life arrangements are something every family will face eventually, so taking time to think and talk about them ahead of that time can reduce financial and emotional stress at the time of need and ensure that wishes are clearly understood. While planning can happen at any time of year, this natural financial checkpoint can make it easier to start the conversation.

At this checkpoint, some options families may consider are:

• Using a full refund to pre-plan arrangements
• Using a portion of a refund toward pre-planning
• Choosing financing rather than using a refund
• Having family members pay for arrangements at the time of need 

Using a Tax Refund for Final Expense Planning

For those receiving a refund, tax season can present an opportunity to set aside funds for future planning, including final expenses.

Psychologically, a tax refund can feel different from money that comes out of an established monthly budget. Because the funds were already withheld throughout the year, applying a refund toward planning may feel less disruptive.

Even allocating a portion of a refund toward final expenses can help families feel like they are getting their affairs in order and taking proactive steps.

Looking at the Bigger Financial Picture

Tax season is also a time when many people step back and evaluate their overall financial situation.

Questions families might consider include:

• What could we comfortably afford to set aside today?
• Would it make sense to pre-pay for arrangements entirely?
• Or would a payment plan work better for our budget?
  
  

The right approach depends on personal financial circumstances and comfort levels.

Why Financing Can Make Sense

Some families choose to pre-pay for funeral arrangements in full, while others prefer spreading the cost over time through payment plans. Payments can often be structured over 1, 3, 7, or even 10 years.

“Financing a funeral is similar to financing other major life expenses,” explains Ron. Instead of paying the entire amount upfront, families can spread the cost over time through predictable payments. Just as people finance homes, vehicles, or medical procedures, funeral financing can provide a way to manage a significant expense in a more structured and manageable way.

Rather than facing a large, possibly unexpected, expense during an already difficult time, financing allows people to make deliberate decisions about arrangements without immediate financial pressure.

Planning for the end of life is like putting a book end on your life’s bookshelf. You get to choose the bookend- what it looks like, the material. 

If you’re considering greener options such as terramation, aquamation, burial at sea, or natural burial  pre-planning makes even more sense, as these options are not the norm, and may take some education for family members who are not aware of these options. 

Part 1: Why Families Choose to Pre-Plan End-of-Life Arrangements

Part 2: What to Expect During an End-of-Life Pre-Planning Meeting

Part 3: Spring and Tax Season: A Natural Time to Think About End-of-Life Planning (this blog)

Download our free green funeral planner to help you begin thinking about, and documenting, your wishes.

You can start the pre-planning conversation now and set up a meeting with a team member here.