There are no requirements to prepay when you prearrange a funeral, but it is an option that should be considered as a part of estate planning.
If you decide to prepay, the funeral home is required to deposit prepaid funds in a provincially approved and regulated institution (bank, trust company or insurance annuity) and hold them in-trust, separately from its current account. Once processing and paperwork is completed, usually within two weeks, you will receive in the mail, proof of deposit confirmation from the institution holding the funds.
These funds are held by the funeral home, in-trust until they are needed. The interest, which accrues over time, is added to the principal sum and upon redemption is available to cover any increase in cost of services from the funeral home. Any additional monies left over, are returned to the estate of the deceased.
These funds are refundable or transferable at any time upon written request to the funeral home. All prepaid monies held are protected by a provincially administered Compensation Fund through the Ontario Board of Funeral Services.
Prepaying allows you to have control over the money spent on a funeral as well as ensuring that the financial aspect of your final arrangements is taken care of and not left to the surviving family members.
What if I have already prepaid with another funeral home?
Switching funded or un-funded prearrangements to the Falconer Funeral Homes from another funeral home is very simple. A cancellation letter to the prearranging funeral home stating your wishes should include names, address and relevant policy or certificate numbers. We can certainly assist you in this process if you wish. Some funeral homes will charge an administration fee for canceling a prepaid contract. Falconer Funeral Homes will accept responsibility for this amount on your behalf.