New York funeral arrangement and prepaid-funeral rights

The New York State Department of Health says a funeral home must give you its General Price List to keep at the start of the arrangement conference, and you do not need to complete arrangements to get one. Funeral homes are also required to give price information over the telephone. The Itemized Statement of Services and Merchandise lists what you chose, the price of each item and the total, and serves as your contract. Ask for the General Price List before you discuss any choices. [1]

The Department lists charges that are illegal for funeral homes, including a handling fee for paying third parties on your behalf, a fee for handling a casket you provide, and charges for anything you did not select. A funeral home also may not charge an extra fee for filing the death certificate, or charge interest on an unpaid balance unless that was disclosed when the arrangements were first made and stated on the Itemized Statement. Check each line of the Itemized Statement and ask about any charge you did not choose. [1]

According to the Department, state law does not require embalming, and a funeral director must get specific approval from the customer to embalm. A funeral home may require embalming for certain services, such as an open-casket viewing. State law does not require a casket or an outer burial container, although many cemeteries require a suitable container and some require vaults or grave liners. Ask the cemetery what container it requires before you choose one. [1]

The Department says you may change funeral homes at any time, paying for services already performed with your approval. The funeral home must allow the body to be transferred even if you have not paid yet, and may not hold the body in exchange for payment. If you plan to move to another funeral home, ask for a statement of the charges already incurred. [1]

The Department of Health says a funeral director must deposit prepaid funeral money within 10 days in an interest-bearing account or a government-backed investment, such as U.S. Treasury bills. The funeral director must tell you where the money was deposited within 30 days of the deposit and, on your written request, tell you the account’s total value, including principal and interest. The interest is taxable to you because the money is still yours. Keep the deposit notice and check the account information each year. [2]

Under a revocable agreement, you can withdraw the principal and accrued interest at any time, and the funeral director cannot charge processing or administrative fees or early-withdrawal penalties. The Department says money in an irrevocable agreement cannot be withdrawn, though it can be moved to another funeral home on written notice, and the move must happen within 10 days of the request. Ask whether your agreement is revocable or irrevocable before you sign. [2]

With a guaranteed funeral, the funeral home accepts the principal and interest as payment in full for the guaranteed items, though cash advance items such as cemetery costs and clergy fees are not included and cannot be charged above actual cost. With a non-guaranteed funeral, you pay the prices in effect at the time of the funeral; your estate pays any shortfall, and any excess is refunded to your estate. Ask which kind of agreement you are being offered and which items it guarantees. [2]

If the funeral home sells its business, both funeral homes must notify you in writing within 30 days of the sale, and you may change your arrangements, ask for your money back with interest, or transfer the funds. If it goes out of business, it must return your money with interest, or you can authorize a transfer to another funeral home. The Department directs complaints about unfair or illegal practices to the State Attorney General. Tell someone you trust which funeral home holds your prepaid money. [2]