08/17/2026
Some Basic Funeral Planning Terms and Definitions
Funeral home professionals often use terms which the general public is unfamiliar with. Here are three such terms and an explanation of what each refers to.
Preneed: this refers to any funeral or cemetery plans which are decided on in advance. Preneed arrangements are recorded wishes with a funeral home. Essentially, the individual will have a preneed file which contains a list of decisions made… such as: the selection of a casket or urn, the desired location for the funeral service and clergy who will preside at it, and sometimes even more specific information such as what music is to be played and which readings or poems will be recited. Preneed arrangements can be prefunded or left till when a person passes.
Prefunding: This is formalizing prearrangements with payment. In this scenario, the person makes decisions on the details of a service and prepays for these services. Two important aspects to prefunding need mentioning. Firstly, any arrangements prefunded will not incur any additional charges when the person passes. These funds are held with a third party and earn income offsetting the effects of inflation. Secondly, some individuals choose to partially prepay for services. They may pay for funeral services, but not cemetery fees. Or, in some instances the funeral home will not take prepayment for services which are not offered directly through them, such as an obituary or catering. These services will need to be paid for at the time of need, when the person passes.
Atneed: This is when decisions are left until when a person passes. Surviving family members make choices about funeral services for their beloved at that time. The decision-making process is typically brief with atneed arrangements. In many instances decisions need to be made immediately when meeting with the funeral director. We are very experienced in working with families under this scenario, so service details will unfold naturally. That said, this is a difficult and emotional time for those entrusted with these arrangements and leaving decisions till this time will add some anxiety and stress to the process.
We have individuals and families who make their arrangements in all of the above ways. If you have questions about preneed, prefunding or atneed arrangements, please contact us. We’re here to help.
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