When it comes to preplanning for your funeral, a preneed funeral agreement is an arrangement made with a funeral home prior to the time of need. These agreements allow individuals to make decisions about their funeral arrangements and ensure that their wishes are carried out after their death. However, it`s important to know that there are certain legal requirements that must be met when creating a preneed funeral agreement. One of these requirements is the disclosure of the agreement.

A disclosure is a written statement that outlines the terms and conditions of the preneed funeral agreement. This statement must be provided to the purchaser at the time of sale, and it must be signed by both the purchaser and the funeral director. The disclosure should include the following information:

– The name and address of the funeral home

– The name and address of the purchaser

– The price of the funeral goods and services

– A list of the funeral goods and services that are included in the agreement

– Any additional charges that may apply, such as fees for processing death certificates or obtaining permits

– The date of the agreement

– A statement that the purchaser has the right to cancel the agreement within a certain period of time

– A statement that the funds paid for the preneed funeral agreement will be held in trust until the time of need

The purpose of the disclosure is to ensure that the purchaser understands the terms and conditions of the preneed funeral agreement. This includes the cost of the funeral, what services are included, and any additional charges that may apply. It also ensures that the funds paid for the funeral agreement are held in trust, which protects the purchaser`s investment and ensures that the funds will be available at the time of need.

In addition to the disclosure, some states require that a preneed funeral agreement be filed with the state. This helps to protect consumers and ensure that the funeral home is in compliance with state laws and regulations. The filing of the agreement also provides a record of the agreement, which can be helpful in the event of any disputes or questions about the arrangements.

In conclusion, a disclosure of a preneed funeral agreement is an important legal requirement that protects both the purchaser and the funeral home. It ensures that the purchaser understands the terms and conditions of the agreement and that the funds paid are held in trust until the time of need. If you are considering a preneed funeral agreement, be sure to ask for a disclosure and read it carefully to ensure you understand the terms and conditions.