How Was a Family Billed for a Funeral That Was Pre-Paid?

Tania Tack • August 18, 2016

Ottawa Funeral Home Mistakenly Bills Family for Pre-Paid Funeral

Talking about funeral planning is a stumbling block funeral professionals meet on a daily basis. Encouraging families to pay for funeral services in advance can also be a difficult task. Understandably, people are hesitant to part with their money. However, pre-paying for a service and guaranteeing lower costs makes sense. In 2011, a woman in Ottawa thought she was making a good decision by pre-arranging and pre-paying for her grandmother’s funeral. When her grandmother died this spring, she received a bill for the funeral. As Executor, she doubted herself, wondering if she had pre-arranged the funeral but not paid for it. After reviewing her records, she realized that she had, in fact pre-paid for her grandmother’s funeral and had the necessary documentation to prove it. So why was she billed?

Since this story went public, people have been asking us how a funeral home could bill a family for a pre-paid funeral. Although the situation was resolved, it does raise concerns. Will loved one be placed with the emotional and financial burden of paying for a funeral?

How Pre-Payment Works

  • The funds invested in funeral prearrangements are always yours, and always portable.
  • The funds invested in funeral arrangements remain in trust or in an annuity account until the death occurs.
  • Once the services are paid in full, the services are guaranteed. There will be no additional fees.
  • Any interest accrued will go towards covering future increases in price.
  • If there are any funds remaining after the coverage current costs, the remaining funds will go back to the estate of the deceased.

We welcome you to read more about how pre-arrangements work by following this link: Long Term Planning or here: Pre-Planning Options

Steps Your Funeral Home Can Take to Protect Your Pre-Paid Funds

  • A funeral home should ensure files are administered to meet the legislation set out by the Bereavement Authority of Ontario.
  • The Bereavement Authority of Ontario audits files on an annual basis.
  • Funeral Homes are obligated to provide families with copies of the contract that lists the prices of services and supplies requested.
  • Families should receive a receipt for the money placed in a trust account or a certificate with an insurance policy, along with copies of any other signed documents.

Steps You Can Take to Protect Your Pre-Paid Funeral

  • Upon purchasing a pre-paid funeral, be sure to keep copies of cancelled cheques or electronic payment records.
  • Ensure that all services and products listed on the contract are paid for.
  • Seek clarification on standard service charges, products and disbursements.
  • Store all receipts and contracts in a safe place and notify your executor or Next of Kin of its whereabouts.

We welcome you to also visit Bereavement Authority of Ontario for more information or download our complimentary Funeral Education Guide.

Why Do Funeral Directors Ask About Pacemakers?

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The Ritual of Spring Burials In Local Cemeteries

By Tania Tack • April 29, 2022
When a death occurs in the winter months, it is quite common that the burial can’t take place until the spring. Our region has long, cold winters and this hinders a cemetery’s ability to conduct burials due to the frozen ground. It is not unusal for many families in our smaller communities thoughout Ontario to […] The post The Ritual of Spring Burials In Local Cemeteries appeared first on Basic Funerals.

Death and Taxes

By Tania Tack • March 24, 2022
Tax rules are often complicated and never fun. In the case of pre-arrangements that is no different. When you pre-arrange your funeral there are some things to consider from a tax perspective that we hope to cover here. We will do our best, but unfortunately, we are not accountants and can’t give you personal advice […] The post Death and Taxes appeared first on Basic Funerals.

The Grave Woman

By Tania Tack • December 10, 2020
The funeral industry is changing. Catapulting that change are women like The Grave Woman, Joél Simone Anthony. She is based in Atlanta, Georgia, but is making waves all over the United States with her alternative approach to funeral service. We had the pleasure of speaking with her and learning more about her work. Joél Simone Anthony […] The post The Grave Woman appeared first on Basic Funerals.

Intestate: Dying Without A Will and How it Impacts Funeral Arrangements

By Tania Tack • November 24, 2020
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Prepare Your Estate: Your Executor Will Thank You

By Tania Tack • November 10, 2020
Being appointed an Executor is often seen as an honour, but it can also be an extremely daunting task. The person selected to look after estate matters is often also likely to be the person grieving the most. In an effort to alleviate the stress associated with being an Executor or Administrator, we have compiled […] The post Prepare Your Estate: Your Executor Will Thank You appeared first on Basic Funerals.

Basic Funerals Awarded Best Rated Funeral Home

By Tania Tack • August 31, 2020
Basic Funerals has been listed as one of the Top 3 Best-Rated Funeral Homes. We are so grateful for the opportunity to serve such welcoming communities. We would not be considered ‘best-rated’ without you! Recognition for Excellence Our team was recognized for providing consistent high quality services in our area of business. We were reviewed by […] The post Basic Funerals Awarded Best Rated Funeral Home appeared first on Basic Funerals.

6 Ways Funerals (Can Still) Help Mourners Grieve

By Tania Tack • July 9, 2020
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Repatriation: How Covid-19 is Keeping Us From Home

By Tania Tack • June 12, 2020
Repatriation: How Covid-19 is Keeping Us From Home The long-lasting Covid-19 pandemic still has an impact on how the death industry is able to conduct services. Funeral and memorial services are still limited to small groups of 10 attendees and burials are to happen as soon as possible. Many funeral providers have also implemented new […] The post Repatriation: How Covid-19 is Keeping Us From Home appeared first on Basic Funerals.

The Healing Benefits of Meditation: Introducing Headspace.com

By Tania Tack • May 25, 2020
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