Preplanning your cemetery and funeral arrangements is a thoughtful and often comforting decision. It offers peace of mind for you and your loved ones, saving them from making difficult decisions during a time of grief and ensures your wishes are honoured. But where do you start and what should you know? Here are the top 10 most frequently asked questions about preplanning:
- Why should I preplan my cemetery or funeral arrangements? Preplanning offers numerous benefits. It allows you to make informed decisions about your final wishes, ensuring they are respected. It also relieves your family of the burden of making complex and emotional choices during a time of grief, and can help to mitigate financial strain by potentially locking in prices at today’s rates, protecting against inflation.
- Is preplanning the same as prepaying? Not necessarily. Preplanning involves documenting your wishes for services, products, and disposition (burial or cremation). Some service providers may even keep a record of your arrangements without charge. Prepaying is the act of setting aside funds to cover those costs. While you can preplan without prepaying, many choose to do both to provide financial relief to their families. If you choose to prepay, you will sign a contract with the service provider.
- How can I prepay for my contract? There are two main ways to prepay:
- Trust: Your money can be held ‘in trust’ by the service provider at a bank, trust company, or with an independent trustee, earning income until the time of need. This option is available here at Lakefield Cemetery for prearrangements.
- Insurance/Annuity: You can purchase an insurance policy from an insurance company, which will then pay the provider at the time of your death.
Many providers also offer time payment plans to suit your budget to allow you to prepay in increments over several months or years.
- How are prepaid funds protected? If you prepay for cemetery or funeral services, your money is securely held in trust accounts or through an insurance product. In Ontario the law protects your prepaid funds in the following ways:
- Providers must give you a contract detailing your payments and terms.
- Prepaid funds for funeral and transfer services are protected by a compensation fund.
- Providers are legally required to choose safe investments for prepaid trust funds.
- If you buy an insurance policy your money is protected under the Insurance Act.
- You have the right to inquire about how your money is invested and the amount in your trust account annually.
- Can I change my preplanned arrangements later? Yes, generally you can make changes to your preplanned arrangements. While certain elements like the final disposition (burial or cremation) might require cancelling and re-contracting, most cemeteries and funeral homes allow for modifications to goods and services. It’s important to review your contract and discuss any desired changes with your provider.
- What happens if I move, can I transfer my arrangements or cancel? Most prearranged cemetery and funeral plans are transferable. If you move, your new cemetery or funeral home can typically assist with transferring your existing plan and any associated funds. However, specific price guarantees or discounts from your original contract might not carry over. Always confirm the transferability with your provider. You, your legal representative, or another person named in the contract can also cancel or change your prepaid contract at any time before the services or supplies are provided, by giving written notice to the provider. The refund amount depends on when you cancel and if the provider has incurred costs. If your money was held in trust, you’ll receive a full refund if you cancel within 30 days. After 30 days, you’ll receive a refund plus earned income, minus a maximum retention fee of 10% up to $350.
- What if the cost of the funeral or cemetery services increases by the time of death? For contracts signed on or after July 1, 2012, all prepaid contracts must be ‘guaranteed’. This means that the cemetery or funeral home will honour the original price of the services and merchandise you selected, even if their costs have increased due to inflation. This means you (or your legal representative) will not be asked to pay more for supplies or services, provided you have met the terms of your contract. Taxes and disbursements, however, are not guaranteed and may require additional payment.
- What if there’s money left over after the contract is paid for? For cemetery or crematorium contracts signed on or after April 1, 1992, and funeral or transfer service contracts signed on or after June 1, 1990, any leftover money will be paid to your estate. For contracts entered into after July 1, 2012, the purchaser can designate a person to receive any leftover funds.
- Are cemetery plot purchases refundable in Ontario? Yes, under Ontario law, if you change your mind about a cemetery plot purchase within 30 days and the interment rights haven’t been used, you are entitled to a 100% refund. After 30 days, a partial refund may be available, typically less the portion contributed to the Care and Maintenance Fund and an administration fee.
- Who can help me with preplanning funeral and cemetery arrangements in Ontario? Licensed cemetery operators and funeral directors are your primary resources as they are regulated by the Bereavement Authority of Ontario (BAO). They can provide detailed information, guide you through the process, and help you understand all your options and associated costs. It’s always a good idea to meet with a few different providers to find one that best suits your needs and budget.
Preplanning your final arrangements is a thoughtful gift to yourself and your loved ones. By addressing these common questions, you can approach the process with confidence and ensure your wishes are clearly understood and respected.
