Margie,
No, my templates are just square. I mark the inside (wrong side) of the backing 1 inch on all sides so I know where to place the batting/block.
It is working just fine, I sewed my blocks together today for the first row of Mama's quilt. Does she suggest sewing along the edge like a topstitch, I centered my seam 1/4 inch out and don't like it as well...
I'll try topstitching next time.