Finances


  • Bay Area Funeral Society

PAYABLE ON DEATH (POD) AND IN TRUST FOR (ITF) ACCOUNTS


Unless you're pre-paying to qualify for Medicaid for institutionalization (nursing home), we do not advise that you pre-pay your funeral expenses. Even in states where the money is refundable and transferable, there are still too many risks to justify it. If you want to pre-plan and set some money aside, we recommend a POD/ITF account. Here are the FAQs:

WHERE TO APPLY

The banks' new-account officer

ALIASES

Totten Trust, Transfer On Death, Revocable Trust, ITF Account

HOW MUCH MONEY?

Enough for estimated funeral and last bills: $1,000+

FUNDED WITH

CDs, checking, passbook savings, money markets

BEST INTEREST RATES

Ask. At the time of this writing, CDs are getting 2% and up, depending on length of CD contract. You can let the CD continue when it matures, or exchange for one with better rates at the time of maturity.

BRING

Picture ID, Social Security number, name of beneficiary(ies)

WHO GETS THE INTEREST?

The owner of the account

WHO PAYS INCOME TAXES ON INTEREST?

The owner of the account

ACTIVITY ON THE ACCOUNT

There is no dormancy issue if you use CDs. Each state has different rules about how often there needs to be activity (withdrawals or deposits) on the other kinds of accounts to prevent dormancy. If it becomes dormant, the money is turned over to the state and it's a hassle to restore.

HOW TO WITHDRAW MONEY AFTER DEATH

The beneficiary shows certified death certificate and his/her own identification. There is no financial penalty to withdraw from a CD in the case of death of owner.

WHO TO NAME AS BENEFICIARY

Name two, just in case first one dies or can't act. Choose your Executor, Power of Attorney, Agent for Health Care, Next of Kin, or someone you can trust who has some business sense. Remember, this person can take the money and run, so make a thoughtful choice.

TELL YOUR FAMILY/FRIENDS AS A SAFEGUARD

Tell your family/friends/interested parties. Add the account information and that it is "for the convenience of paying funeral bills" on a designated agent sheet and attach it to all copies of the will.

Who We Are

  • The Bay Area Funeral Society (BAFS) is a non-profit organization that helps consumers in Alameda, Contra Costa, and San Francisco counties arrange funerals that are dignified and affordable. BAFS is one of more than 100 similar groups across the country, supported by the national Funeral Consumer Alliance (www.funerals.org). We are run solely by volunteers, and have no attachment to the funeral industry or to any religious group.

What We Do

  • We contract with local, independent mortuaries so that our members receive death goods and services at reduced prices. We also engage in consumer-education outreach. This includes group presentations, printed materials, personal consultations, local price surveys and membership benefits.

Our History

  • BAFS grew out of the Berkeley Co-op movement and has been in operation for over fifty years. In the past, our membership roster included the famous author, Jessica Mitford, whose best-selling book, The American Way of Death, exposed the excesses and high-pressure sales tactics of the funeral industry. BAFS continues her work.