What happens to pre-need funds if a funeral home closes in Nebraska?

When a funeral home closes in Nebraska, pre-need funds must be returned to the consumer. This is a protective measure for individuals who have made advance arrangements for funeral services. These funds are typically held in trust accounts or through insurance policies specifically designated for the payment of funeral services in the future. If the business ceases operation, it ensures that the individual who paid for these services is not at a loss and can either access their funds or have an alternative arrangement made for their funeral needs. This consumer protection underlines the importance of maintaining trust and accountability in the funeral service industry.

Other options, such as being kept by the state, forfeited to creditors, or donated to charity, do not align with the fiduciary responsibility that funeral homes have towards individuals’ pre-need funds. The primary goal is to safeguard consumers' investments in their funeral arrangements.