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. According to Schilling, once money is placed in a funeral trust, the money cannot be removed. Therefore, money that might be needed for daily living expenses should not be placed in the trust. According to Jones, McMillan Memorial Gardens also does not offer funeral insurance policies.