When you prearrange your funeral, the funeral director records your wishes to be carried out at the time of death. These instructions are kept on file at the funeral home until they are needed. If you are going to make an informed choice when you prearrange your funeral, you need to: know what you want; how much you can afford to pay; if guarantees are provided on merchandise and services; what happens if you move and want to change funeral homes; and if you are protected against inflation.

It is not compulsory to pay in advance for prearranged funeral. However, pre-payment offers many advantages. This option allows you to pay for tomorrow's funeral in today's dollars. It also provides peace of mind in knowing that financial obligations will not be placed upon your estate or your next-of-kin.

If you choose to pre-pay for your funeral, you have several options:

• Purchasing an insurance policy
• Depositing the full sum of money at once
• Installment payments

Insurance policies
Insurance policies can be purchased to contribute to the cost of the funeral.

Pre-paid funds
All funds pre-paid directly to the funeral home are deposited in a trust account with a financial institution in accordance with the Funeral Directors & Establishments Act for the Province of Ontario. Interest earned stays with the principal amount in trust to fund the cost of the funeral.

Pre-paid funds are refundable at any time upon written request to the funeral home. If the agreement is cancelled after 30 days and prior to the time of need, the Funeral Directors & Establishments Act allows the funeral director to charge an administrative fee not exceeding 10 percent of the prepayment funds to a maximum of $200 (plus tax).

If you move to another city, contact the funeral home. The funeral director can cancel your contract and refund your prepayment and the interest earned. Or, the funeral director may make arrangements to "transfer" your prearrangement to the funeral home of choice in your new location without refunding the contract.

Pre-paid funds are protected
All pre-paid funeral funds placed in trust are protected by a compensation fund, which is financed by funeral homes and transfer service operators. The Board of Funeral Services of Ontario administers this compensation fund.

    We would like to thank the following for their contribution to this page:

Mike Stone, Lynn-Stone Funeral Home, Elmvale, ON

The Ontario Funeral Service Association