The Ins and Outs of Transferring a Pre-Need Funeral Plan

December 11, 2025

Pre-planning and pre-paying for funeral expenses—often called a pre-need funeral plan or prearrangement—is a thoughtful way to ease the emotional and financial burden on your loved ones. But what happens if you move or simply change your mind about the funeral home? The good news is that in most cases, your plan is transferable.

What is a Pre-Need?

A pre-need is a written contract with a funeral home, cemetery, or third-party provider outlining your wishes for funeral or burial services and merchandise (like a casket or urn). Crucially, it usually involves pre-funding those services.

How Pre-Funding Works

The money you pay doesn't typically go straight to the funeral home. Instead, it's held by a third party for your security, usually in one of two ways:

Funeral Trust: Your money is placed in an interest-bearing account held by a bank or financial institution, often with the funeral home named as the recipient upon your death.

Funeral Insurance Policy: A specific type of insurance policy is purchased, with the policy's death benefit designated to cover the funeral costs. The funeral home is usually the beneficiary.

This third-party arrangement is why the funds are typically transferable—you remain the owner of the account or policy until the contract is fulfilled.

Crucial Distinctions: Contract Type and Financial Control

Before transferring, it's vital to know the type of contract you have, as this dictates your control and flexibility.

Revocable: Generally allows cancellation and a refund (less fees). Highly flexible and easy to transfer. Funds are usually a countable asset for Medicaid/SSI eligibility.
Irrevocable: Cannot be canceled, and you usually cannot get a refund. Funds must be used for funeral expenses. It can usually be transferred, but the price guarantee may be lost. Often used to make funds exempt from assets for Medicaid/SSI eligibility.

Price Guarantees and Cost Differences

When you transfer a pre-need, your primary financial consideration is the price guarantee.

Loss of Price Guarantee: The original contract often guarantees the price of the services and merchandise at the current rate (locking out inflation). When you transfer a plan, the new funeral home is generally not obligated to honor the original funeral home's guaranteed prices.

The transfer usually moves only the cash value (the money plus interest) of the trust or insurance policy.
This cash value acts as a credit toward the new funeral home's current prices.
If the new funeral home’s prices are higher, your family may have to pay the difference at the time of need.

Non-Guaranteed Items: Most pre-need plans do not guarantee the cost of "cash advance" items (like clergy honoraria, obituaries, flowers, or state fees). These costs will always be paid at the current market rate, and the funeral home will charge the family for any difference.

How to Know if a Pre-Need is in Place

If you're looking for a plan for yourself or a loved one, here's how to check:

Look for Paperwork: The most definitive proof is the pre-need contract or agreement itself. Look through important documents, safety deposit boxes, or files for a contract or an insurance policy that specifically names a funeral home.

Contact Local Funeral Homes: If you know the general location, call funeral homes in the area and ask if they have a pre-need file under the person's name.

Check with Insurance Companies or Banks: If you find a policy or bank statements that seem connected to a pre-arrangement, contact the institution (insurance company or trustee bank) listed on the documents. They can confirm the nature of the policy or account.

Simple Steps to Transfer Your Pre-Need

Whether you're moving, the funeral home has changed ownership, or you've simply found a firm that better suits your needs, transferring a plan is usually a simple process.

Select a New Funeral Home: This is the most important step. Choose the new funeral home you wish to use.

Contact the New Funeral Home: They will usually handle the entire transfer process for you. You just need to provide them with the paperwork from your original plan.

Gather Your Documents: Collect your existing pre-need contract, funeral insurance policy, or trust documentation. This paperwork contains key information needed for the transfer.

Sign the Transfer Request: The new funeral home will prepare the necessary transfer or assignment forms for you to sign, authorizing the change.

The New Funeral Home Handles the Rest: They will send the signed authorization to the original funeral home and/or the third-party trust or insurance company. The funds or policy will be designated to the new funeral home.

What About Cancellation and Closure?

Cancellation and Refund Policy

If you have a Revocable contract, you have the option to cancel.

Refunds: The ability to get a full or partial refund, and any potential penalties, is dictated by the contract terms and State Law.
Some states allow the funeral home to retain a significant portion (e.g., up to 30%) for administrative fees if you cancel a revocable trust.

Funeral Home Closure or Acquisition

The funds are safe in a third-party trust or insurance policy, but you need to know what happens if the original funeral home closes down or is sold:

If Sold: The new owner usually assumes all existing contracts and price guarantees.
If It Closes: State regulations require notification, and the third-party trustee (bank or insurance company) will guide you through reassigning the funds to a new funeral home. Your money is generally protected, but you still need to actively choose a new provider.

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The Heart of the Role: What a Funeral Director Really Does

By Shalynn Garrett • December 11, 2025

A funeral director—sometimes called a mortician or undertaker—is much more than a service coordinator. They are the compassionate guide who steps in the moment a death occurs to manage every detail until long after the service is over. They balance professional expertise with deep empathy, creating a dignified, healing experience for those who are grieving. How They Support Families Through a Difficult Time In short, they take on the burdens so the family can focus on saying goodbye. Taking Care of the Details & Paperwork They handle all the complex logistics and administrative tasks that can feel overwhelming when you're in sorrow: First Call: They are the first point of contact , immediately arranging to respectfully transport your loved one from the place of death to the funeral home. Legal Guide: They navigate the mountain of necessary paperwork, including filing the death certificate , securing all required permits (for burial or cremation), and helping with paperwork for insurance claims or veteran benefits. Service Design: They gently walk you through all the necessary choices, helping you decide on: Disposition: Burial, cremation, or other options. Products: Selecting a casket, urn, or vault. Timing: Setting the date, time, and location for the visitation and service. Vendor Coordination: They act as a central hub, coordinating everyone from the clergy and florists to musicians and cemetery staff, ensuring everything flows smoothly. Crafting a Meaningful and Unique Tribute A funeral director’s true gift is helping you honor a life that was truly unique. Personalization: They listen to your stories and traditions to design a service that genuinely reflects the deceased's personality, values, and life journey. This involves selecting music, setting up photo tributes, and ensuring all cultural or religious rites are observed. Respectful Care: They oversee the dignified preparation of the deceased, which may include embalming, dressing, cosmetic application, and casketing for viewing. Day-of Management: They run the event from start to finish. On the day of the service, they are the calm presence in charge , directing guests, managing the schedule, and ensuring every scheduled element proceeds with dignity and peace. Obituaries: They often assist the family in writing and submitting an obituary or death notice to newspapers and online platforms. Offering Compassion and Ongoing Aftercare This is where the emotional support comes in, acting as a pillar of strength during the darkest hours. Emotional Safety: They provide a steady, calm, and empathetic presence , offering a safe space where families can express their grief and make important decisions without feeling rushed or pressured. Gentle Guidance: They present options and offer professional advice, ensuring families make choices that feel right to them, even when they are emotionally vulnerable. Post-Service Support: Their care doesn't stop after the service. They often connect families with local grief counseling services and support groups, and they follow up to assist with final details like the return of cremated remains or memorial keepsakes. In essence, the funeral director is a compassionate guardian who stands with the family during their hardest time. Their expertise transforms overwhelming logistics and legal hoops into a seamless, manageable process . By gently carrying the heavy burden of coordination and paperwork, they create the sacred space necessary for the family to simply grieve, heal, and fully honor the unique life they've lost. They are the calm, knowledgeable presence that ensures remembrance can flourish when sorrow is deepest.