In the event of funeral home closure, what should happen to funds collected for pre-need services?

When a funeral home closes, the funds collected for pre-need services must be either transferred to another provider or returned to the individuals who made the pre-need arrangements. This requirement is in place to protect consumers and ensure that the funds intended for specific funeral services are not lost or misappropriated.

Transferring the funds to another provider allows the financial commitment of the consumer to continue, ensuring they receive the services they paid for. If transferring is not possible, returning the funds ensures that individuals are not left without recourse after the closure. This provision in the laws aims to provide a safeguard for consumers who plan ahead for their funeral services and want to ensure that their pre-arrangements are honored, regardless of the business circumstances of the funeral home.

Other options—such as remaining with the funeral home, being used for other business expenses, or being donated—would jeopardize consumers' rights and would not fulfill the obligations to honor the pre-need contracts. These actions would be contrary to the laws designed to protect the interests of individuals who have made financial preparations for their funerals.