HARTFORD — The Department of Consumer Protection is reminding the public about what should be included in a prepaid funeral service contract and issuing guidance about how to verify your funds will be available when you or your family need them.
A prepaid funeral contract establishes funeral funding and services in advance and is sometimes called a “pre-need” contract. Consumers may choose to enter into a pre-need contract as part of their end-of-life planning to ensure funds are set aside for their funeral and other services. Consumers may establish a pre-need contract by contacting the licensed funeral home of their choice.
“Many people engage in end-of-life planning to ensure their loved ones don’t have to deal with such details during their grief,” said DCP Commissioner Bryan T. Cafferelli. “It is critical that consumers understand who is allowed to offer a prepaid funeral service contract, what should be included in that contract, and how they can verify over time that the funds are where they are supposed to be. Nobody deserves to be surprised by stolen or missing funds when it comes time to plan the funeral for their loved one.”
“Connecticut’s licensed funeral directors meet with families every day to help them establish pre-need funeral contracts,” said Jesse M. Gomes, CFSP, CPC, CCO, Executive Director of the Connecticut Funeral Directors Association. “We encourage consumers to carefully read the contract presented, ask questions, and then review the document with their attorney if they have any concerns. Once a contract has been signed with a funeral director, he or she will immediately present you with a copy, and the escrow agent will send a statement within 25 days, confirming the deposit of the funds and will provide yearly tax documents that assure the continued escrow management of the funds.”
The Connecticut Funeral Directors Association strongly recommends that once the contract is signed, you should have a conversation with your family about the document and its location, so relatives are aware that you have preplanned your funeral.
Funeral service contracts must be in writing and include:
- Contact information, including name, address, telephone number and Social Security number, of the beneficiary and consumer.
- Contact information, including name, address, telephone number and license number of the funeral director or the service-providing establishment.
- List of selected goods and services and an explanation that if the particular merchandise provided for in the contract is not available at the time of death, the funeral service establishment will furnish merchandise similar in style and at least equal in quality of material and workmanship provided for in the contract.
- Amount of funds paid or to be paid by the consumer and the payment method.
- Description of how funds will be invested and how investments are limited to those authorized by the law. If the Funeral Service Contract is funded by a life insurance policy, this contract provision does not apply.
- Description of any price guarantees by the funeral service establishment (guarantees that the price will not change). If there is no price guarantee, meaning the price may increase at a later date, there must be a specific statement in the contract to this effect.
- Contact information for the escrow agent, how the consumer will be notified of receipt of the initial deposit, and a description of any fees to be paid from the escrow account to the escrow agent or any third-party provider, unless the funeral service contract is funded by a life insurance policy.
- A provision describing whether the contract can or cannot be cancelled . For contracts that can be cancelled, a description of how the purchaser or the beneficiary can cancel the funeral service contract and the effect of cancelling the contract. For contracts that cannot be cancelled, a description of how the contract can be transferred to a different funeral home.
- The signature of the purchaser or authorized representative and the licensed funeral director of the funeral service establishment.
Before signing a pre-need contract consumers should:
- Understand what must be included in a prepaid funeral service contract;
- Understand who can offer a prepaid funeral service contract;
- Verify the credentials of the funeral home and funeral service director; and
- Know who their escrow agent is and how to contact them.
Once the contract is signed and deposit has been paid, consumers should receive a notice within 25 days from an escrow agent that acknowledges the receipt of initial deposit, unless the funeral service contract is funded by a life insurance policy. That confirmation letter will indicate the successful deposit of 100 percent of the purchaser's pre-paid funds sent to the escrow agent by funeral director. Consumers should contact the escrow agent directly, not through the funeral provider, for information about the escrow account and funds.
DCP may check pre-need contracts to see if they include anything that’s unfair or misleading under Connecticut law. The Connecticut Department of Insurance regulates the funding of funeral services via life insurance, and the Department of Public Health issues credentials for embalmers, funeral homes, crematories and funeral directors.
You can verify credentials at elicense.ct.gov.
Consumers who prepaid for funeral services through Pietras Family Funeral Homes should verify the status of their arrangements by contacting their escrow agent or life insurance representative. If they believe their funds were mismanaged, consumers should call their local Police Department, or their local State Police Barracks if their town does not have a local department.
Consumers who have an issue with a prepaid funeral service contract may file a complaint with the Department of Consumer Protection by visiting ct.gov/dcp/complaint.
For more information about prepaid funeral service contracts, visit https://portal.ct.gov/dcp/home/funeral-service-contracts?language=en_US.