Some funeral homes will also promise that if a person pays for a funeral in full and leaves the interest in the account, the funerals price is guaranteed whenever the person dies. If the funeral costs less than the trusts amount, some funeral homes will refund the unused money. According to Jackan, there are differences between dealing with private and corporate funeral homes. He said that transferring insurance policies between a corporate funeral home and a private funeral home can be difficult. In addition, Schilling said funeral homes and cemeteries have different regulations.
Cemeteries can keep part of the funds for administrative costs and commissions.
He said that when in doubt, consumers should ask if 100 percent of the funds is deposited and if the fund has a trustee. Instead, the funeral homes work with customers to start funeral trusts with local banks. Customers then receive interest on the accounts. That way they can get more, better interest, Jackan said. We dont see any money before they die.