Prearranging your
funeral
When you prearrange your funeral, the funeral director records your wishes to be carried out at the time of death. These instructions are kept on file at the funeral home until they are needed. If you are going to make an informed choice when you prearrange your funeral, you need to: know what you want; how much you can afford to pay; if guarantees are provided on merchandise and services; what happens if you move and want to change funeral homes; the tax consequence of the funding arrangements, if any, and if you are protected against inflation.
It is not compulsory to pay in advance for prearranged funeral. However, pre-payment offers many advantages. This option allows you to pay for tomorrow's funeral in today's dollars. It also provides peace of mind in knowing that financial obligations will not be placed upon your estate or your next-of-kin.
PRE-PAID FUNERAL AGREEMENTS
Generally, funeral pre-planning consists of two steps: making the funeral arrangements and second, funding the cost of the prearrangement funeral through an insurance policy, making installment payments, depositing the full sum at once or some other method. It is possible to select funeral goods and services without pre-funding the funeral or to pre-fund a funeral without selecting specific goods and services.
All funds pre-paid directly to the funeral home are deposited in a trust account with a financial institution in accordance with the Prearranged Funeral Services Act for the Province of New Brunswick. Interest earned stays with the principal amount in trust to fund the cost of the funeral.
If you move to another city, contact the funeral home. The funeral director can cancel your contract and refund your prepayment and the interest earned. Or, the funeral director may make arrangements to "transfer" your prearrangement to the funeral home of choice in your new location without refunding the contract.
The contract should contain a complete description of the merchandise and services purchased, and disclose the current price of the merchandise and services. If a unique service is requested, you should discuss this in detail with the funeral service professional to determine if the service can be provided.
FUNERAL SERVICE SELECTIONS USUALLY INCLUDE:
Professional services of a funeral director and staff
Transportation services
Embalming and other preparation
Facilities for visitation
The funeral ceremony
Funeral vehicles
Other services and associated items (pastoral services, music, grave opening and closing).
FUNERAL MERCHANDISE SELECTIONS INCLUDE:
Casket, urn or both
An outer burial container (cemetery vault or other selection).
Other merchandise and associated items such as flowers, acknowledgment cards, and transfer containers.
A funeral planning professional will be able and willing to help you with each of these steps.
The funeral contract should clearly state whether the provision of the supplies and services is guaranteed or not guaranteed. A guaranteed funeral means that regardless of the retail price of the funeral at the time of death, there would be no obligation to pay additional money to the funeral provider. The guarantee may be limited if installment payments are selected as a method of payment.
The agreement should also state that goods and services of equal value will be substituted if the exact ones are not available at the time of need, at no extra cost.
The contract should disclose any penalty or restriction, including geographic restriction, on the funeral homes' ability to perform.
Cemetery arrangements should be discussed well in advance, too.
Some questions you should ask when deciding on a plot are:
Does the plot meet the requirements of your religion?
What restrictions are placed on the types of monuments and burial vaults?
Does the price include perpetual care and maintenance?
Are there other plots available in the same location to provide for the burial of the entire family?
