What Happens to a Prepaid Funeral Plan After a Death in BC

Finding a prepaid funeral contract among a loved one's papers can be a relief, but it can also raise questions. Who contacts the funeral home? What if the family wants a different home? What if the plan does not cover everything?

This article explains who can act, how the contract fits with the rest of the estate, and where to look for help with costs. Details such as refunds and transfers depend on the wording of the contract itself.

This article covers the law of British Columbia.

Start by finding and reading the contract

Look through the person's papers, email and files for the contract and any receipts. If there is a safety deposit box leased in the deceased's name, alone or jointly, the person controlling the premises must not allow removal of the box or its contents until a representative of the deceased or the joint holder has prepared an inventory, dated and signed by those present. Practice varies by bank, so ask the branch what it requires.

Read the contract for the name of the funeral home, what services and goods are covered, and what it says about changes, transfers and refunds. Keep a copy before you hand over the original.

Who can act on the plan

The right to give instructions about the remains goes in a set order, starting with the personal representative named in the will, then the spouse, an adult child and others down the list. If the person with the right is unavailable or unwilling, it passes to the next person.

A written preference about disposition in a preneed contract binds the person with control, provided it is consistent with the Human Tissue Gift Act and is not unreasonable, impracticable or a cause of hardship. The Province says only the person named in the will, or someone authorized under the Cremation, Interment and Funeral Services Act, can let a funeral director move the body.

Funeral operators and providers are protected from liability for acting on an authorization, unless they knew or ought to have known it was false or that the signer lacked authority.

Unused funds, transfers and consumer protection

Whether unused money is refunded, whether a plan can move to another funeral home, and what protections apply to the money paid in are questions the contract and the provider's records answer. We do not state a general rule here. Ask the funeral home to put its answers in writing, and have a lawyer review the contract if the amounts are significant or you are told something that does not match the paperwork.

• Ask what exactly was prepaid and what is still payable.
• Ask whether any balance would be returned, and to whom.
• Ask whether a transfer to another funeral home is possible and what it would cost.
• Ask for every answer in writing.

If the plan does not cover everything

In an insolvent estate, reasonable funeral and other expenses incurred by the personal representative are the first priority for payment, ahead of the representative's compensation, legal expenses, wages and other claims. That order applies only to insolvent estates. In a proceeding by the personal representative, the court can award reasonable expenses of the funeral and disposal of the remains. In an intestacy, funeral and administration expenses are deducted when calculating the net value of the estate.

BC's Burial or Cremation Supplement is available when the estate and the responsible person cannot pay the full cost, and it is not limited to income assistance recipients. Preapproval from the ministry is required before burial or cremation services are provided, and payment goes directly to the funeral provider. Whether a family member is personally liable to the funeral home depends on the contract they sign, not on the order of priority.

What to do next

• Gather the contract, receipts and any funeral wishes in the will.
• Work out who holds the right to give instructions.
• Contact the named funeral home and ask for the plan details in writing.
• Do not sign a new funeral contract until you know what the plan already covers.
• Keep funeral records for the estate accounts, since a personal representative must account to beneficiaries and creditors.
• If costs are not covered, ask about the supplement before services are provided.

Frequently asked questions