Prepaid Funeral Services

1 What are the benefits of prepaid funeral services?

Prepaying and planning funeral services allow us to take care of our loved ones during our lifetime and relieve family members of the burden of funeral expenses. Having a pre-agreed and prepaid contract with a funeral home will significantly ease the important decisions your loved ones need to make regarding the organization of the funeral process. A prepaid contract not only solves the financial problems that arise in the event of death but also provides timely help to those mourning your departure.

Prepaying for funeral services is the most reliable way to fix the cost of a funeral, as the price of all pre-agreed services remains unchanged from the moment the contract is signed and cannot be altered later.

2 What should you know when preparing to conclude a prepaid funeral services contract?

  1. Meeting with the staff of your chosen funeral home to discuss various options for funeral services, their cost, and your preferences. After discussing all the details, the funeral director will draw up a contract and a list of all the services included. Each contract is individually tailored to the client’s personal requirements.
  2. When concluding a prepaid funeral services contract, you have several payment options: pay the entire amount immediately or divide it into a fixed number of payments.
  3. You must inform your relatives about the existence of the contract and its storage location.

3 What do you need to know about prepaid funeral services when signing a contract?

Your interests and those of your family are protected by law. New York State legislation is among the strictest in the country and regulates the conclusion and execution of prepaid funeral service contracts. The New York State Funeral Directors Association has developed a list of questions to pay attention to:

  • Are copies of the official prices (price list) for funeral services provided?
  • Have you received a copy of the description of all services included in the prepayment: the Itemization Statement and the Prepaid Funeral Services Contract?
  • If you are currently a Medicaid recipient, have you signed an Irrevocable Agreement?
  • Have you received a Confirmation Statement within 30 days indicating that the money you provided as a deposit was transferred to a special account within ten days of signing the contract?
  • Have you received confirmation from the bank (organization) where you keep your money?
  • Are your funds transferred to a secure government special savings account (e.g., U.S. Treasury bonds)?
  • Have you received a Confirmation Statement for each additional payment you made?
  • Have you received an Annual Statement regarding the status of your account (total accrued interest), intended for paying funeral services?

4 You should always remember:

  • The money in your account for paying funeral services is always yours and can be transferred from one funeral home to another.
  • Upon a written request, the funeral home must provide you with information about your account at any time.
  • If you have signed a revocable prepaid funeral services contract, the money and accrued interest can be refunded upon your written request.
Do not hesitate to discuss all contract points and any concerns with the funeral home staff.

Ask questions to the funeral director you have chosen.

You can always turn to the issues in the Association Pohronnyh Directors of New York State (NEW YORK STATE FUNERAL DIRECTORS ASSOCIATION, INC.), using the following coordinates:

New York State Funeral Directors Association
426 New Karner Road
Albany, NY 12205-3810
Phone: (800) 291-2629, (518) 452-8230
http://www.nysfda.org

 

    Different types of prepaid funeral service contracts

    New York State law requires that all prepaid funeral service contracts be revocable (contracts whose terms can be changed). This means that if the person who signed the contract wishes to terminate it, all accumulated money and earned interest must be refunded within ten days of the request. Exceptions are contracts signed with SSI and Medicaid recipients, which are irrevocable (contracts whose terms cannot be changed). An irrevocable contract with an SSI or Medicaid recipient cannot be terminated until death but can be transferred from one funeral home to another.

     

    The classification of prepaid funeral service contracts includes guaranteed and non-guaranteed contracts.

     

    Guaranteed

    contract:

     

    A guaranteed contract ensures that the cost of the funeral service does not exceed the amount accumulated in your trust account at the time the service is provided. If you periodically withdraw money from your account, the funeral home reserves the right to cancel the guarantee. In most cases, the cost of cemetery services, religious representatives’ services, and the preparation of necessary documents cannot be guaranteed. The funeral home cannot charge you more than the cost of these services.

    Non-Guaranteed

    contract:

     

    Under a non-guaranteed contract, the funeral home provides clients with pre-agreed services at the price existing at the time of service. If the amount in your trust account is insufficient to pay for the services specified in the contract, the remaining amount must be paid. If the amount in your account exceeds the amount required for the funeral service, the excess money must be returned to the heirs (this does not apply to irrevocable trusts). The prices for the services provided must match the official price list (general price list) in effect at the funeral home at the time of service.

    How does a contract to prepay funeral services?

    • You choose the Funeral Home.
    • You meet with the funeral director.
    • You (the buyer) select the dates of your services and
    • related products, then checks their cost with official rates Funeral Homes.
    • Funeral Director provides you with a list of specified services and contract to prepay the ritual service.
    • You (the buyer) and the funeral director sign all necessary documents.
    • You (the buyer) pay the full or partial cost of funeral services by check for funeral homes or Programs Funeral Trust. If payment is made by cash, you must be provided with an appropriate receipt.
    • You (the buyer) receive a copy of the signed documents and official prices funeral homes.
    • Within 10 days Funeral Director must transfer your money to a secure state special savings account.
    • You should get a 30-day period confirmation (Confirmation Statement), that the money received from you Funeral Homes, were transferred to the special account.
    • Money is transferred funeral director only after the ritual service.