Definitions

A "preneed funeral services contract" is a detailed contract with a funeral provider for future funeral services. In these contracts, the cost does not increase even if the funeral takes place many years later. In many cases, you may wish to leave prearrangement information with the funeral home, but not prepay for the services. Your estate can then be used to cover the cost of the service.

A preneed cemetery services contract is a contract with a cemetery operator for future cemetery services.

A "memorial society" sells memberships only for a nominal fee. The fee does not cover the cost of the funeral service. Becoming a member of a memorial society generally means lower costs, as the society negotiates a lower price structure with a funeral provider on behalf of its members. To find a memorial society in your area, look in the Yellow Pages under "funeral directors." Note that the word "memorial" in a company's name doesn't necessarily mean it is associated with a memorial society.

Costs

Funeral service contracts must include an itemized listing of all goods and services purchased and any other costs involved, so you know what you are buying.

Money collected under a preneed contract is placed in trust and a savings institution in British Columbia administers the trust account in accordance with a written agreement between the savings institution and the funeral provider or cemetery operator. Sellers of preneed conrtacts must submit annual reports to the Consumer Protection BC.

A funeral provider or cemetery operator must deposit the money collected into a trust account within 21 days. Sellers are entitled to a deduction for selling expenses of 20% of the amount paid.

Funeral homes and cemeteries are prohibited from engaging in telephone solicitation or in direct selling at a person’s residence. A funeral salesperson may only enter your home to sell you a prepaid funeral at least 24 hours after receiving an invitation from you.