What is a pre-need funeral arrangement?

Individuals prepay for funerals and burials by entering into a preneed agreement, or contract, to pay in advance for goods or services they will receive upon death. Upon the individual’s death, the funds are used by the representative of the funeral home or cemetery to provide the designated goods and services.

What are pre-need arrangements?

“Preneed arrangement,” “preneed agreement” or “preneed” is written instruction regarding goods or services or both goods and services for final disposition of human remains when the goods or services are not provided until the time of death, and may be either unfunded or paid for in advance of need.

What is a guaranteed preneed contract?

Preneed agreements can be either revocable or irrevocable, but they both guarantee that the money you’ll need to cover the costs of your funeral will be available when the time comes.

What type of contract is a funeral contract?

There are two kinds of prepaid funeral contracts: revocable and irrevocable. Revocable means you can cancel the contract and get most of your money back. Irrevocable means you cannot cancel the contract, but you can transfer it to a different funeral home if you want to.

How does a pre-need work?

A pre-need plan is purchased from a specific funeral home. To set it up, you choose the funeral home you want to work with and specify the arrangements you desire. The funeral home prices it out and you pay the cost ahead of time (either all at once or over time).

What is a pre-need?

Pre-need simply means you pay for your funeral arrangements in advance. The allure of the pre-need arrangement is the sense of security it provides to those who wish to leave as little of a burden as possible on their loved ones – including the financial burden of paying for a funeral.

Can you pay for funeral in advance?

A pre-paid funeral is a plan made with a funeral home that’s been paid ahead of time (the money has already been paid or has been set aside for this purpose). The plans typically range from $10,000 to $25,000 policy amounts, and are paid for in monthly installments directly to the funeral home.

Are funeral plans legally binding?

Generally funeral wishes expressed in a Will aren’t legally binding. Decisions on funeral arrangements including date, location and guest lists, are the responsibility of the deceased’s legal representative.

Can a pre need be transferred?

You may transfer your pre-paid funeral arrangement to the Fears Family Funeral Home at ANY time; preneed contracts can be transferred either BEFORE OR AFTER DEATH occurs. Can I transfer my pre-arranged funeral contract to any funeral home I wish? Yes you can.

Who has the legal right to Organise a funeral?

Most funerals are arranged by the nearest relatives and if not by a close friend. If there is no one, the local or health authority will arrange a simple funeral. The person may have left instructions about the type of funeral and burial they wanted.

What is a pre need funeral plan?

Specifically, a pre-need funeral plan is an arrangement you make with a specific funeral company to cover details relating to your death. As this article in the New York Times points out, pre-need does not mean prepaid-in-full.

What is a pre need arrangement?

By definition, Pre-Arrangement or Pre-Need is when a person takes care of their funeral arrangements, by meeting with their funeral director, who will placing their wishes in writing in advance of death occurring.

What is a pre need funeral?

Pre-Need Funeral. The Regulation and Enforcement Division is responsible for the implementation of the Pre-Need Cemetery and Funeral Registration Act. Any funeral home or cemetery which sells funeral or cemetery merchandise or services prior to the death of the contract beneficiary is required to register with this Division.

What is a funeral service contract?

By law, a “funeral services contract” is one that is purchased before services are required and in which a funeral director obligates a funeral home to provide specified funeral services and merchandise.