Arizona crematory and prepaid funeral trust rights

In Arizona, a person may not advertise or operate a crematory without a crematory license issued by the Department of Health Services, unless the person has received a certificate of authority from the state real estate department. The department may discipline a crematory that, unless otherwise allowed by law, sells or offers to sell a cremation that is not arranged by a licensed funeral establishment. Ask which licensed funeral establishment is arranging the cremation and which licensed crematory will perform it. [1][2]

The department may also discipline a crematory that cremates a body before obtaining certification from the county medical examiner, or the person performing those duties, and, where the person who died did not sign their own document authorizing cremation, before obtaining express written consent from the authorizing agent. Cremating more than one body at the same time in the same retort without the authorizing agents’ express written consent is also grounds for discipline, as is selling anything of value obtained as a result of the cremation process. Ask who will give written consent for the cremation. [2]

For a prearranged funeral agreement funded by trust, money paid under the agreement, apart from any initial service fee described below, must be deposited in a prearranged funeral trust account with a financial institution doing business in Arizona. The deadline is five business days after receipt, or for a fixed-price agreement, 21 calendar days or 15 business days after receipt, whichever is shorter. Except as the law provides, the deposited money and accrued interest remain the property of the beneficiary during their life and of their estate after death. Ask for the name of the financial institution holding the trust account. [3][4]

The funeral establishment may charge an initial service fee of up to 15% of the total amount the purchaser agrees to pay, and that fee is paid to the establishment, not to the trust account. If the purchaser pays in installments, no more than half of any payment may be applied to the initial service fee, and if the agreement is canceled before it is completed, any part of the fee not yet paid is no longer due. The establishment may also charge an annual service fee of up to 10% of the interest that accrued on the trust funds during the preceding calendar year. Ask for the dollar amount of each fee in your agreement. [4]

A purchaser may make a written request to the funeral establishment to end the agreement and have the trust funds refunded, and the establishment must then refund the remaining trust funds to the purchaser. If the request is received within three business days after the agreement is signed, the refund must include all money paid under the agreement, including the full amount of any initial service fee. If the beneficiary has died, the person designated on the agreement, or if that person is not available, the person legally responsible for the beneficiary, may submit a written request to end it. Ask how a cancellation request should be submitted and how the refund will be calculated. [5]