Alabama cremation and prepaid funeral contract rights

Alabama law requires every cremation performed in the state to be arranged through a funeral establishment licensed by the Alabama Board of Funeral Services. A crematory may operate only if its operator is licensed by the board as a funeral establishment and the crematory has been registered with and inspected by the board before it performs any cremations. Ask which funeral establishment is arranging the cremation and which crematory will perform it. [3][2][1]

A body may not be cremated within 24 hours after the time of death. The exception is a death from an infectious, contagious or communicable disease, where the disease is verified and the waiting period is waived by a medical examiner, county health director, county coroner or attending physician. Cremation also requires a completed cremation authorization form approved by the board and signed by the authorizing agent, and a completed state identification form. Ask who will sign the authorization and when the cremation is expected to take place. [3]

The family member serving as authorizing agent must be told that they, or someone they designate, may witness the transportation of the remains to the crematory. A funeral establishment that does not allow relatives or the responsible party to view the cremation process must disclose that in writing before any contract is signed. Cremating more than one person in the same chamber at the same time, or dividing cremated remains, is prohibited without the authorizing agent’s prior written consent. Ask whether you may witness the transport or the cremation itself. [3]

A purchaser may cancel a preneed contract by written notice to the seller within 30 days of the date it was signed, provided the funeral merchandise and services have not yet been used. The purchaser is then entitled to a complete refund of the amount paid, except any amount for merchandise or services already used, and is released from the contract. Refunds owed on cancellation must be made within 30 days after the seller receives the written notice. Ask the seller where written notice should be sent. [4]

After 30 days, a purchaser may still cancel the funeral services, funeral merchandise, facilities and cash advance items portions of the contract at any time by written notice, and is entitled to the refund the contract defines for those items. Any accumulated earnings allocable to the contract are paid to the seller on cancellation. For funeral contracts made on or after January 1, 2015, a board rule requires the contract to provide that the seller’s cancellation fee after 30 days may not exceed 20% of the purchase price collected, with the balance of payments refunded. If the contract is funded by life insurance or an annuity, the rule says a cancellation after 30 days entitles the purchaser to the policy’s cash value or other refunds under the policy terms, unless the purchaser keeps the policy by continuing to pay premiums. Ask how your contract is funded and how a refund would be calculated. [4][5]

Alabama preneed contracts are cancelable and revocable, as section 34-13-233 provides, during the purchaser’s lifetime, but a contract may not stop a purchaser who is a qualified applicant for, or a recipient of, Supplemental Security Income, temporary cash assistance or Medicaid from making it irrevocable. For contracts made on or after January 1, 2015, the contract must explain this irrevocable option, and the purchaser must acknowledge that the contract stays revocable unless and until the option is signed, and that signing it is not required. If a contract is made irrevocable, the authorizing agent may appoint a provider other than the seller; the seller transfers the amount paid and the amounts deposited in trust, less a reasonable transfer fee, and no transfer happens unless the appointed provider accepts it. Check whether you are being asked to sign the irrevocable option before you sign. [4][5]

If the seller breaches the contract or fails to provide the funeral merchandise or services, the purchaser is entitled to a refund of 100% of all money paid, made within 30 days after the seller receives a written refund request. For contracts made on or after January 1, 2015, the purchaser must also acknowledge that any cash advance items not guaranteed at the listed contract price are clearly marked as subject to change, with any difference due when the contract is fulfilled. Ask which cash advance items in your contract are not guaranteed. [4][5]