Where does prepaid funeral money go?

Depending on state law and the contract, funds may be placed in trust or used to purchase an insurance or annuity product. Start by getting a written itemization of the provider's charges, then ask where each claimed requirement comes from and verify whether it is law, cemetery policy, or simply the provider's practice. As part of the arrangement review, consumers should understand what is guaranteed, what can increase, who owns the funding, cancellation rights, portability, and what happens if the provider closes. For this funeral planning decision, a prepaid funeral contract can fund selected goods and services through insurance, a trust, or another state regulated method.