Winter Farm Show features variety of speakers including one with tips for funeral planning
Mortality is not something anyone likes to think about, but the reality is that everyone dies, and families can prepare for it.
Crawford-Osthus Funeral Chapel and Cremation Services gave an educational presentation during the Watertown Winter Farm Show on Wednesday. The Farm Show continues through Saturday at the Codington County Extension Complex and includes livestock shows, commercial exhibits and contests. Admission is free.
Crawford-Osthus Funeral Chapel Owner Chad Osthus began his presentation by giving the audience an important planning guide to assist families in managing the funeral and accounts of a relative.
“When someone passes away, and they didn’t do any planning – we take for granted knowing things like where your mom was born or your mother’s maiden name,” said Osthus.
The funeral planning guide lists bank accounts, social media profiles, the location of essential documents, friends and relatives who should be informed, personal funeral preferences and more. Each of which are pieces of information that can ease the burden on loved ones after someone dies.
While funerals costs continue to rise, there can be savings by planning early.
“One of those ways is through a bank trust. It’s a glorified savings account called a burial account,” said Osthus. “The state authorizes these accounts. All you need is the date of birth, social security number and an address. Anyone can set them up for anyone.”
There are also options to pay a sum over time, making payments on the account for five to 10 years to reach a funeral expense goal. These funds can earn interest, but interest rates have not been good for several years and do not keep up with the cost of inflation.
“We know which banks are paying the best interest, but don’t get your hopes up. No banks are paying good interest rates right now,” said Osthus.
Once a funeral expense plan is in place through Crawford-Osthus Funeral Chapel and Cremation Services, the funeral cost will be locked in at what was quoted when setting up the account — regardless of whether the expense upon death was higher than initially planned due to inflation.
“I sign it, and you sign it, and I will honor it,” said Osthus. “The $18,000 funeral that you prepaid 10 years ago now costs $23,000, and let’s say your trust grew to $21,000. I’m not going to bill you the additional $2,000.”
Aside from bank trusts and savings accounts, insurance policies are a popular option that allows for monthly payments toward the fund.
“We use them the most,” said Osthus. “They are a guaranteed issue insurance product. These are life insurance plans designed specifically for burial.”
Once the set amount in the contract is paid for the years allocated, the premium will begin drawing interest at a rate that is a bit better than what the banks are giving, Osthus said.
Preparation before critical illness and death is also essential if relatives need a care facility. Medicaid does not allow the use of a prepaid funeral fund to cover the cost of the care facility.
If a prepaid funeral fund is not established, the state will allow $15,000 per person in an irrevocable funeral bank trust.
“It was set at $10,000 back in 1962. In July of last year, they just gave us a $5,000 bump. Funeral costs have gone up a lot since 1962,” Osthus said.
It is never too early to begin getting affairs in order. This is particularly true in the wake of COVID-19, where local funeral homes have seen record numbers in services.
“COVID-19 was not pleasant for our community,” said Osthus. “In November, both funeral homes in Watertown together had as many deaths as we typically see in half a year in that one month. It was that drastic.”
This article originally appeared on Watertown Public Opinion: Watertown Winter Farm Show features funeral planning speaker
