EDITOR'S NOTE: This article was originally published in the October 2010 issue of Kiplinger's Retirement Report. To subscribe, click here.
When Mark Frankel's parents left their New York home for Florida more than 25 years ago, they kept one small piece of real estate near their former residence: two unused plots at the Beth David Cemetery in Elmont, N.Y. It became clear that the couple wouldn't use the plots after Frankel's father died and was buried in Florida.
Frankel's mother enlisted her son, now 56, to help sell the burial rights in 2006. The cemetery wouldn't buy back the double plot, which was worth about $4,500. For $90, he listed the property online with Final Arrangements Network (www.finalarrangementsnetwork.com; 989-893-6321), a company that helps connect burial-plot buyers and sellers.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Although it took more than a year, Frankel eventually sold the two plots for $2,000. "People buy everything online these days," he says. "I don’t think I got more than two or three inquiries, but it did work."
People who buy burial plots may think they're reserving a place for eternity. But moves, divorces and other life changes may force owners to decide they no longer need the plots. Often, adult children inherit spaces in family plots that they don't intend to use.
Finding a buyer is often tricky, because most potential buyers don't realize that burial rights can be resold. "It's not like trying to sell a car, a boat or a house," says Robert Fells, general counsel for the International Cemetery, Cremation and Funeral Association. "There's not really an established resale market."
If you no longer want the property, first talk to someone at the cemetery to make sure you have the legal right to sell. If you bought with someone else, each owner must agree to a sale. In the case of several adult children inheriting cemetery property, a sibling who wants to sell his or her plot needs permission of all the joint owners. Otherwise, the transfer cannot be made.
You can ask if the cemetery will buy back the burial plot, although many won't. Independent cemeteries are unlikely to buy back a plot, says Gail Rubin, who writes a funeral-planning blog, "The Family Plot." "Church- or synagogue-owned cemeteries may have more lenient policies regarding selling back burial rights," she says. Rubin says that her own synagogue's cemetery in Albuquerque, N.M., will refund the original purchase price of a plot minus a 10% service fee.
Find a Buyer Online
If a cemetery won't buy back the plot, you have other options, including free online-listing sites such as Craigslist.org, newspaper classified ads, and cemetery registries and brokers such as Grave Solutions (www.gravesolutions.com; 888-742-8046) and American Cemetery Property (www.americancemeteryproperty.com; 866-979-6750). You can even sell the plot on eBay.com.
The listing should include the name of the cemetery, a description of the property, the number of lots and the price, says Bob Ward, a cemetery-property specialist at Final Arrangements Network. Some Web sites allow photos. "In some ways, you list it the same way you'd list a house," he says.
Fells warns against any service that requires large upfront fees. Sellers can expect to wait months or years before the plot sells, if it sells at all, so don't go with a service that has monthly or annual costs.
Although the challenges are significant for sellers, they can present opportunities for buyers. Buyers can snap up plots for less than 50% of a cemetery's current plot price. "There are so many more sellers than buyers right now in the secondary market," says Fells.
Buyers should ask the cemetery if there will be any additional costs that could arise, such as perpetual-care costs. Also, contact the cemetery to be sure that the seller has the legal right to sell.
The cemetery will provide legal documents that the buyer and seller will sign. The cemetery will then issue burial rights to the new owner and charge a fee -- ranging from $15 to well over $100. Ask about these fees upfront.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
457 Plan Contribution Limits for 2025Retirement plans There are higher 457 plan contribution limits for state and local government workers in 2025 than in 2024.
-
Medicare Basics: 11 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2024 and 2025SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 in 2024 and $70,000 in 2025..
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2024 and 2025simple IRA The SIMPLE IRA contribution limit increased by $500 for 2025. Workers at small businesses can contribute up to $16,500 or $20,000 if 50 or over and $21,750 if 60-63.
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2025retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
