Are Funeral Expenses Tax-Deductible?
Are funeral expenses tax-deductible?
Burial and funeral expenses can really add up, especially when you aren’t prepared for them.
Whether you have recently paid the bill for a loved one’s funeral service, or started thinking ahead to your own final expenses, it’s natural to wonder—is there a way I can get a discount on this?
Unfortunately, in most cases, you as an individual can’t get a tax write-off for funeral and burial expenses. While there are deductions for some end-of-life medical expenses, funeral costs aren’t covered the same way. However, if you’re using the funds from an estate to cover the cost of the funeral, you may be able to claim a deduction to reduce the estate’s overall taxable income.
This can get tricky—we recommend talking to a tax professional or using tax software to make sure you’re eligible!
A simpler way of managing the cost of funeral expenses is to plan ahead. You can even get a “discount” on your funeral by purchasing a preneed policy, which locks in the price and protects you from inflation.
How much will my funeral cost?
Ultimately, there are a lot of different factors and decisions that will affect the cost of a funeral. Beyond just burial or cremation, there are many customizations you can select to create a memorial service that’s personal, appropriate, and within your budget.
One benefit of pre-planning is that you’ll not only pick out what you want—saving someone else the hassle of figuring that out later—but you’ll also lock in the price at today’s rates, so you know exactly how much it costs.
How will I pay for it?
While there are a number of options for covering funeral expenses, like trusts and savings plans, preneed arrangements are specially designed to cover your funeral—exactly the way you planned it and with funds available exactly when your family needs them. With a preneed policy, you’ll pay today’s cost for the goods and services you select—even if your funeral won’t be for another 30 years!
Just as a professional can guide you through a complex tax situation, there are experts to help you with funeral expense planning, too. We are happy to schedule a free consultation with you and an Advance Funeral Planner in your area to walk you through the options available and talk to you about a preneed policy.
While you may not be able to deduct funeral expenses on your taxes this year, you can take steps today to ensure that your funeral expenses will be covered in the future.
Have more questions about financing a funeral? Download our free guide to funeral funding and learn practical tips to choosing the financing option that’s right for you.
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Disclaimer: The information in this article should not be considered professional financial investment advice. This article is for information purposes only. The ideas presented in this article should not be used without assessing your own personal and financial situation, or without consulting a financial professional.
