What Happens to My Prepaid Funeral Plan If I Move?

I was asked this question three times this week; what happens to my prepaid funeral plan if I move?  And each time I gave the answer: when people set up a prepaid funeral plan the money within the plan is always the purchaser’s money.

The Canada Revenue Agency mandates that the funds within a prepaid funeral plan must be insured to $100,000.00 in the purchaser’s name.  These funds are also earning 2% tax exempt interest within the prepaid funeral plan.

The prepaid funeral plan is called an Eligible Funeral Arrangement (EFA) and this is only available via a licensed funeral home and a licensed funeral director.

As these funds are the purchaser’s funds, if the purchaser moves, these funds move with them.  Similarly if a person moves, their banking accounts, investments and other financial assets also move with them.

Changing the Assigned Funeral Home

When people move, the funds in the EFA are still their funds and the funeral home that the funds are assigned to is changed.  This is a very easy process.  All that is required is a letter from the purchaser asking that the EFA funds be reassigned to the desired funeral home.  There may be an administration fee to do this.  When people work with me, I have never charged this administration fee.

Review New Funeral Home Policies on Accepting Prepaid Funeral Plans

While the funds are easily transferred, there is a potential downside.  The reassignment of the EFA funds does not obligate the new funeral home to guarantee the future cost.  Having stated this, most funeral home are very willing to accept the prepaid funeral plan as this is a future funded funeral that is on their books.

It can be difficult to consider our own mortality, yet this is one certainty in life.  It is so much easier to solve this issue when we are alive, than to have your family thrown into having to plan a funeral when they are in emotional turmoil.

Do you have an EFA in place?  If you want to learn more or if you’re not sure what is important to have organized or how to do this than please click on the link below to purchase your PDF copy or hard copy of the Taking Care of Business – Executors Workbook to help you get started on being organized.  You can connect with me via email or telephone, leave a comment here on the site or click the contact tab at the bottom of the screen if you are reading this post on the website. Don’t forget to join in the conversation on Facebook and Twitter too!

Until next time,

Kat

Katherine Downey is the #1 Funeral Preplanning Professional in Canada for the fourth time. She is a professional educator, author, licensed funeral director and insurance advisor. To set an appointment or have your questions answered, please contact Kat directly.

What is Advance Care Planning and How Do You Choose Who Will Represent You?

Confused Senior Man With Adult Daughter At Home

Advance Care Planning is the process of deciding and documenting who is your voice and to what extent you want medical treatment in the event of your mental incapacity.

Many people have shared with me that their ideal way to die is to go to sleep and not wake up.  Certainly some people do die this way.  In reality however, many people will have a longer process involved in their future care before they die.

How do you set up an Advanced Care Plan? Continue reading

Spring Cleaning: Reduce, Reuse and Recycle with a Warm Hand

Donation boxes with clothing and food

Wow, our lives sure can get busy and complicated.  We take care of our families – shuttling children to school, activities, getting the school forms signed, accumulating stuff, then chucking that “stuff” into a temporary storage space, while thinking “I’ll get to it later”. Maybe tomorrow, maybe on the weekend, maybe next week.  Then more time passes and before you know it there is more “stuff” accumulated everywhere.

As we get older, we may find that we use less and less of our everyday items.  We may have younger family members, children or grandchildren who may benefit from them.  Why not share some of your memories with family & friends and encourage them to make new ones?  This is a simple part of estate planning that can be done at any age, at any time.  The more organized your estate is, the less stress we leave our estate trustee in organizing it with the added stress of our passing. Continue reading

What Happens to One’s Social Media & Digital Footprint When They Die?

Business woman writing blank Password list. Isolated on white.

Last year a colleague died suddenly and tragically.  It was a tremendous shock to the community and people showed up in droves to pay their respects.  Last week a request to endorse this person popped up on LinkedIn and I was immediately thrown right back to last year.  This left me thinking about what is the best way to handle a deceased person’s presence on social media?  What will happen to their social media accounts and digital footprint in general? Continue reading

What Needs to Be Done When Someone Dies?

Top view of businessman planning the future - open notebook with word Plan on his desk surrounded by two curves of dominos, one standing and the other falling.

I had three calls this week from colleagues asking me to guide them through the process of what has to happen when a loved one dies.  Unfortunately in each case there was no preplanning nor had the families had any conversations about what type of funeral the deceased wanted.  Imagine their total bewilderment and shock at having to make important once in a life time decisions – all while they are in a state of total emotional overwhelm.

I think we could all agree that this is not the optimal state of mind to be in to have to make funeral decisions.  Especially when there are so many steps involved that haven’t been thought about.  To give you an idea of this comprehensive list, I have prepared a short list of just a few of the many steps involved in what needs to be done when someone dies. Continue reading

The Unexpected Tax Incentive Canadians Don’t Necessarily Want to Think About

A coffin with a flower arrangement in a morgue

My article “The Unexpected Tax Incentive Canadians Don’t Necessarily Want to Think About” was recently published by Gail Johnson in Yahoo Finance Canada.  I would like to share this article with you here.

There’s a tax incentive that some Canadians are dying to get.

Income earned on contributions made to an “Eligible Funeral Arrangement” is allowed to grow tax-free under Canada’s Income Tax Act. Continue reading

Do I need a Casket, a Container, a Coffin…?

funeral preplanning Mississauga Oakville

click to enlarge

Have you asked the question – do I need a casket, a container or a coffin? Did you know that when an individual wants to be cremated, buried or entombed, by law the body must be in a casket or container?

A coffin is rarely used in Ontario and differs from a casket. A coffin is 8 sided and usually made of wood (see right). It is more common to see coffins used in Europe rather than Canada.

For earth burial many people are familiar with the casket (pictured above) being lowered into the ground. A casket is a 6 sided container made of particle wood with a felt cloth covering, a mix of particle wood and solid woods, soft woods, hard woods or metal. The range in price of a casket can vary widely from $500.00 to over $10,000.00. Continue reading

Taking Care of Business Executor Workbook – 2nd Edition

click to enlarge

click to enlarge

At this time of year many of us turn our thoughts to holiday preparation. What will the menu be, how will I find the time to do all the shopping and how can we juggle our time to visit among various families? Then before we know it, all the preparations and festivities are over. Between Christmas and the New Year many of us take time to reflect on the holiday season and put thought into getting more organized for the coming year. In preparation for that reflective time, I am thrilled to announce the launch of the 2nd edition of Taking Care of Business – Executor’s Workbook! Continue reading

Is that Really my Loved One’s Cremated Remains?

prepaid funerals Mississauga Oakville

A concern that people have shared with me is “How do I know that it is really my loved one’s cremated remains that I am getting back?” The answer to this is that our full circle of care of loved one’s cremated remains starts from the initial transfer and there is a very detailed and organized method of identifying your loved one.

When someone dies and they are to be cremated, the deceased is transferred from the place of death to the funeral home. At the place of death the identification of the deceased is checked before the body is transferred to the funeral home. Once the deceased is at the funeral home, a cremation application is filled out and signed by the Estate Trustee. Each cremation application has a unique number. This number identifies the deceased and the coroner that signed the cremation application. The Estate Trustee is given copies of these forms. Continue reading

Remembrance Day – What Coin Will You Leave Today?

Canadian Soldier WW2

During the time of the Roman Empire, as a way of leaving money for the deceased in the hereafter, people would place a coin on the headstone to indicate they had visited. The tradition continued after the Vietnam War on Remembrance Day as a popular way to pay one’s respects to fallen soldiers.

The coin denomination indicated your relationship to the deceased. For example, if you left a: Continue reading