Funeral Trust Agreement

A funeral trust agreement protects the consumer's investment in pre-arrangement cemetery and funeral plans.

Funeral trust agreements are designed to protect monies consumers have invested in cemetery property or funeral arrangements pre-need. Each state has its own regulations regarding what clauses are included in a funeral trust agreement.

Purpose

All money received toward a pre-arrangement plan of funeral services or cemetery property is required to be held in a trust fund. This trust fund is to be monitored by a board of trustees and is unavailable to the funeral home or cemetery until the time of death of the investor.

About the Agreement

A funeral trust agreement is signed by the funeral home or cemetery pre-arrangement counselor and the buyer. It outlines, in detail, the space or services purchased. If a payment arrangement has been made, the funeral trust agreement will also show the initial deposit and payment plan that has been established between facility and buyer.

Consumer Protection

Regardless of the state of the cemetery or funeral home at the time of the buyers' death, the funeral trust agreement is to be valid. Some funeral homes and cemeteries will allow the funeral trust agreement to be transferred to another facility if necessary.

References

• National Funeral Directors Association: Preplanning
• State of Tennessee: Pre-need Trust Agreement