Indiana funeral, cremation and prepaid-plan rights

Indiana’s public credential search has separate forms for people and facilities. Use the individual form for a funeral director and the facility form for a funeral home or crematorium. Ask for the name and credential number of the professional and business involved, then check each record. A search form’s availability does not establish a particular provider’s credentials. [1][2]

Indiana provides for crematory authorities to register with the State Board of Funeral and Cemetery Service. A separate provision requires each crematory authority to file an annual report. The annual reporting requirement should not be described as annual registration renewal. Ask which crematory will perform the cremation and check that facility’s record. [3][4][2]

For contracts covered by Indiana Code section 30-2-13-12.5 and entered into after June 30, 1999, the contract must give the purchaser 30 days after both parties sign to revoke it by written notice to the seller. The seller must return the cash or insurance policy used to fund the contract, without interest. If it is not revoked within that period, the contract becomes irrevocable. However, a purchaser may choose immediate irrevocability for favorable treatment under Medicaid, Supplemental Security Income or another public-assistance program. Check whether you are making that choice before signing. [5]

The same section requires the whole cash payment or insurance policy funding the contract to be deposited into an authorized trust or escrow within 30 days after both parties sign; a seller may elect to act as trustee of a previously existing life insurance contract. A cash-funded trust can permit a seller withdrawal of up to 10% of the original price for services or merchandise, subject to the statutory notice requirements. An escrow can permit an administrative or service fee of up to 10% of the total contract price for services or merchandise. Ask what the seller will receive and what will remain to fund the contract. [5]

Do not assume every prepaid plan guarantees all the listed services regardless of funding. Section 30-2-13-12.5 limits the guarantee for installment contracts, previously issued insurance policies, and new policies with a limited or qualified death-benefit period. It also allows exceptions for certain transportation expenses and conditionally guaranteed cash-advance items. Where delivery is not guaranteed, the seller may reduce the services or merchandise, or require additional payment for full delivery. Ask the seller to identify every guarantee and exception in your contract. [5]