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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,


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.

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  1. […] a previous blog I wrote about Eligible Funeral Arrangements (EFA).  The rules of an EFA mandate that the money set aside in a prepaid funeral plan is always the […]

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