Planning FAQs

What happens to my money when I purchase a pre-arranged funeral?
Pre-arranged funerals and cremations are paid for in a manner that is in compliance with the laws set forth by the Board of Funeral Directors and Embalmers in Virginia. Monies are deposited in a life insurance policy or a trust fund, and remain there until the death of the individual the pre-arrangements were made for.

Does the money set aside in a pre-arrangement earn any interest?
Virginia Law requires any pre-arrangements executed in the state to grow at a rate equal to the consumer price index. A normal operating range for the consumer price index is between 2.25% and 3.25%. It may dip below or exceed this range occasionally.

What happens to the interest on a pre-arrangement?
Interest is split into two parts at the time a claim is filed on a pre-arrangement. Interest accrued on guaranteed items by the pre-arrangement contract goes to the funeral home to help offset the loss of monies the funeral home has, based on the current amount of the services rendered. Interest accrued on non guaranteed items is credited to the current amount of those items to offset the amount of money that the surviving next of kin will have to pay at the time of a death.

What happens to monies that are in excess of the current amount of services at the time of a death?
Any excess monies that are above the current amount of goods and services are returned to the responsible party after the account has been settled.

What happens to the monies set aside in a pre-arrangement if the funeral home goes out of business?
Monies are mandated by Virginia law to be escrowed so that funds may only be collected at the time of a death by the funeral home. Pre-arrangements can be transferred to another local funeral home that may be willing to provide those services for the same amount.

How can my pre-arrangement monies be protected if I ever have to depend on Medicaid for medical care?
Pre-arrangements can be earmarked as irrevocable, which exempts the monies set aside, and interest accumulated in the account from being counted against the Medicaid recipient as an asset.

Are my pre-arrangements transferable if I move or relocate outside of the service area of the funeral home that I have contracted with?
The consumer, in most cases, is the owner of their own pre-arrangements, and has the right to move or relocate them at will. They simply must identify the funeral home in the new area to the insurance or trust company, and request a transfer of arrangements from the original funeral home.

What happens if the casket that I selected for my funeral arrangements is no longer manufactured at the time of my death?
Virginia law requires the casket that is substituted to be of equal or greater value, and of like condition. For example: if a pre-arrangement contains a bronze casket, it may not be substituted with a stainless steel casket. The casket must be manufactured from bronze material. This also applies to burial vaults and other merchandise that may not be available at the time of a death.

How do I know the prices of items and services that I select are the same for everyone?
The Federal Trade Commission requires funeral homes to present you a copy of the general price list, casket price list and or urn price list, vault price list and or urn vault price list upon the discussion of services and merchandise that you are or may be interested in. All of these lists have an effective date, and will be used for everyone until such lists are replaced with new ones, which will contain a new effective date.

Can a pre-arrangement be cancelled?
Pre-arrangement escrow providers authorized to conduct business in the state of Virginia must allow consumers a period of 30 days in which to review any pre-arrangement contract they have purchased, and cancel it without any monetary penalties.

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