December 04, 2024
Are prepaid funeral arrangements refundable?
Dear Consumer Ed:
I am considering pre-purchasing funeral arrangements for myself and my wife. However, there is a possibility that we may move in the next few years. If I prepurchase and later decide to cancel, is the funeral home required to give me my money back?
Consumer Ed says:
Yes. Georgia law provides protections for individuals who choose to purchase prepaid—otherwise known as “preneed”— funeral services and arrangements. The law also details specific instructions for funeral homes that offer these services.
Preneed sellers in Georgia must be licensed by the Secretary of State to offer this service. The funeral home must also comply with Federal Trade Commission’s funeral rule. When a funeral home sells a preneed plan, it must deposit 100% of the money received into a trust or escrow account that is titled in the name of the funeral establishment.
If you purchase preneed funeral services and later change your mind, you are entitled to a refund, provided that you request the refund before the death of the person for whom the services were intended. Funeral homes are required by law to refund you the full amount that you paid within three business days of the request. Please note that the funeral home is permitted to deduct taxes, as well as administrative costs of up to three percent of the total amount paid for the services.
If a funeral home refuses to refund you for purchased preneed services, or if you believe a funeral home has otherwise committed fraud, you may file a complaint with the Secretary of State’s office at https://sos.ga.gov/page/how-submit-licensing-complaint. You may also want to consider contacting an attorney with expertise in elder law matters for further assistance.
For more information and tips about purchasing funeral arrangements, visit https://consumer.georgia.gov/consumer-topics/funeral-services.
Submit your own question to Consumer Ed. Remember…we do not give legal advice. Always consult a lawyer about legal issues.