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Funeral Costs
During the rare times when people
actually think about their funeral expenses, many do not
consider the various costs associated with funeral
expenses. As a result, they underestimate the burden
these expenses can have on their survivors. Costs that
are often overlooked include the cost of a hearse,
transportation for mourners, and transportation of
remains to a funeral home. These services, in addition
to the basic service charges, headstone costs, a burial
vault, visitation, embalming and the price of a cemetery
plot can easily add up to $7,000. According to the
National Association of Funeral Directors, the average
cost of these funeral expenses is close to $7,000.
Probate Costs
Probate costs are the legal fees
incurred during the process of legally validating and
processing a will. These costs can be substantial if you
have not prepared a legal will or irrevocable trust.
Some have estimated that probate costs can amount to 8
percent of your estate.
Estate Taxes
Estate taxes and administrative costs can also be
substantial, depending on the size of your estate. If
your estate is valued at over $600,000, your heirs may
have to pay both state and federal estate taxes and
inheritance taxes. These taxes can rapidly diminish the
worth of an estate to your heirs. Federal Estate taxes
begin at 37 percent for estates valued over $600,000 and
take up an increasingly larger share as your estate
grows. Consult your tax advisor or attorney
regarding your estate to determine a specific amount to
estimate for your estate taxes.
Medical Expenses
With today's extensive medical
care, medical expenses can quickly amount to substantial
figure - even with health insurance. (Just think of your
current medical expenses and factor in the extra costs
of a life and death situation.) A moderate estimate of
these expenses is $7,000.
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