What does a funeral home do with money thats been paid for pre-arrangements?
When funds are paid directly to the funeral home, federal and provincial regulations state that such a payment constitutes a contract and that a “trust” has been established. In other words, the funeral home may not touch the funds under any circumstances. The Canada Deposit Insurance Corporation protects the funds in the same way as money in a bank or trust company. Increasingly, people are recognizing the advantages and flexibility available to them by funding their pre-arranged funeral with specially designed insurance. Such policies still provide for guaranteed delivery of services, while freezing prices today.
