If prices go up, the income that your prepayment earns will be used to offset any increase in costs.
At the time of death, funeral establishments, cemetery and crematorium operators must provide a statement showing either:
- how much money an insurance policy will pay for the costs of final arrangements
- how much money is held in trust (including income earned) and what the services you requested cost at the time they are delivered
If you have a prepaid contract that was made on or after July 1, 2012: will not be asked to pay more for the services or supplies you requested except for any balance that may still be owing under the contract. Any services or supplies that are requested but not included in your prepaid contract will also need to be paid for.
If you have a prepaid contract made before July 1, 2012: your legal representative may have to pay more money to cover higher prices depending on the terms of your contract. As of July 1, 2012 all prepaid contracts must be guaranteed — meaning that a provider cannot ask for more money if the cost of delivering the supplies and services goes up.
The cost of the services must be based on the most current price list. If that cost is lower than the amount you pre-paid (and the interest earned since you signed the contract), then there will be leftover money.
If there is money left over after everything in a contract is paid for, what happens with any remaining money will depend on the date the contract was made and the rules that applied on that date.
Any leftover money including the interest earned will be paid to your estate or the person specified in your contract to receive the refund if:
- your contract was signed on or after April 1, 1992 for cemetery of crematorium contracts
- your contract was signed on or after June 1, 1990 for funeral or transfer services
The Funeral, Burial and Cremation Services Act, 2002 does not require that a refund be made for contracts entered into before these dates.