North Carolina cemetery and prepaid-funeral rights

A North Carolina cemetery company may not advertise a perpetual care fund when selling its property unless the amount deposited in the fund is at least $100 or 10% of the retail sale price, whichever is greater, for each grave space, niche or mausoleum crypt sold. If a cemetery tells you it offers perpetual care, ask how much of your purchase price goes into that fund. [4]

When a cemetery sells merchandise or services in advance, such as items or services used in a cemetery for a future burial, it must either deposit 60% of the money it receives into a trust account until the deposits equal 60% of the sale price, or post a performance bond with the Cemetery Commission large enough to cover all payments by purchasers who have not yet received what they bought. The contract must list a separate cost for each item, each installation, and each grave opening and closing. Ask the cemetery whether your contract is backed by a trust account or a performance bond. [5]

You may cancel such a contract within 30 days after signing it by giving the seller written notice. The cemetery must then refund, within 30 days, the principal amount on deposit in the trust account for your benefit on any merchandise or services not yet delivered, and that amount is your entire entitlement under the contract. Separately, if the cemetery cannot or does not provide what the contract calls for after you request it in writing, you or your heirs or authorized representative are entitled to the entire amount paid on the contract plus any income the trust account earned on it. Put any cancellation or delivery request in writing and keep a copy. [5]

From October 1, 2026, if you fund a prepaid funeral contract with a trust deposit, the seller must deposit the funds in an insured account at a financial institution, in trust, within five business days. The seller may keep up to 10% of each payment outside the trust, but only if it discloses the percentage to you in writing in advance. Earnings stay with the trust, but the trust may be charged applicable taxes, reasonable fees for preparing its tax returns, and certain early-withdrawal penalties, so the account balance can differ from what you paid. Ask what percentage, if any, the seller will retain and which financial institution will hold the rest. [1]

A prepaid funeral contract may be revocable or irrevocable, at your option. For a revocable trust-funded contract, the financial institution must refund to you the entire amount it holds within 30 days of receiving your written request. An irrevocable contract can be revoked, or its proceeds refunded, only by court order, apart from limited exceptions such as a beneficiary who has moved out of state and made a new contract there. If the policy funding an insurance-funded contract is cancelled, the insurer pays what the policy’s own terms provide. Before signing, ask whether your contract is revocable and whether any retained amount would come back to you if you cancelled. [2][3][1]