And worse, some families have found the contracts can t be honored because the funeral home has been sold, gone out of business or the money has been mishandled. In its May issue, Consumer Reports does a great job of highlighting the many pitfalls in prepaying for funerals. An investigation by the magazine showed that many people pay top dollar for prepaid funeral contracts. Paying today for the promise of services and merchandise delivered years from now is always an iffy proposition for the buyer. There are a wide range of state laws governing the prepayment of funeral goods and services.
Some state laws do a good job of protecting consumers money.
Others offer little legislative protection. So, before buying a pre-need funeral contract do some research. AARP has a wonderful section on its Web site on pre-need funeral and burial agreements. If you don t have access to a computer, call the organization at 800.424.3410. The Federal Trade Commission also provides advice on planning and paying for a funeral.