Contracts
Prices for funeral services and goods are not locked in. The funeral establishment applies the amount prepaid (plus interest) to the final balance due at the time of need, based on current prices.
Nonguaranteed Contracts:
Amendment to a will
Codicil:
Each heir receives an equal share of the estate
Per Capita ("by head"):
Held for the benefit of another; funeral homes often act as trustees.
Trust Accounts:
FTC Funeral Rule enacted.
1984:
Cannot be canceled or refunded. Often required for Medicaid/SSI eligibility
Irrevocable Contracts:
Gift of real property via a wil
Devise:
Becomes a nuisance based on circumstances (e.g., funeral home in a residential area)
Nuisance in Fact:
Regulated by the EPA; requires a depth of at least 600 feet, at least 3 nautical miles from land
Sea Burials
UAGA updated.
2006:
Can be canceled by the purchaser at any time before death, with a refund of monies paid.
Revocable Contracts:
Cancellation of a will
Revocation:
Considered a nuisance under all circumstances (e.g., illegal activities)
Nuisance Per Se:
Insurance policy providing funds for funeral costs.
Burial Insurance:
Cremation rates hit 50%.
2016:
The deceased left a valid last will and testament.
Testate:
Mental competence to make a will.
Testamentary Capacity:
Each branch of the family inherits equally, with descendants of a deceased heir receiving that heir’s portion
Per Stirpes ("by branch"):
Funds held by a third party until obligations are met
Escrow Accounts:
UAGA adopted by all 50 states
2017:
The funeral establishment agrees to provide goods and services for an amount not exceeding the contract’s value (plus interest, if applicable). Often excludes cash advance items (e.g., flowers, obituaries
Guaranteed Contracts:
Person making a will
Testator:
The deceased did not leave a valid will, and state laws govern the distribution of assets
intestate:
Covers funeral costs but may include preselected arrangements
Funeral Insurance:
Alkaline hydrolysis approved in 20 states
2021: