One of the most common questions we receive is whether pre-planning means that a person must pay for their arrangements in advance.

The answer is no.

Pre-planning and prepayment are two separate decisions. You may document your wishes without paying in advance, or you may choose to discuss financial arrangements as part of the process.

Prepayment means making a financial arrangement in advance for some or all of the products and services identified in your plan.

Depending on the agreement, the arrangement may be funded through an approved trust or insurance-based product.

All details should be provided in writing, including what is included, how the funds are held and what happens if your circumstances or wishes change.

Funding arrangements in advance may reduce the amount your family or estate will need to pay when the services are required.

Prepayment allows you to review prices and choices without the time pressure that can follow a death.

Your agreement identifies the goods and services you selected and the financial arrangements associated with them.

Some prepaid contracts may guarantee particular goods and services at the price identified in the agreement.

Not every possible expense will necessarily be guaranteed. The written contract should clearly state what is protected and what may be charged at the price in effect when the services are needed.

Depending on the plan, certain expenses may be provided by third parties or may not be included in a price guarantee.

These could include:

• Cemetery or columbarium fees
• Newspaper obituary charges
• Flowers
• Clergy or celebrant honorariums
• Reception facilities and catering
• Transportation outside the stated service area
• Additional staffing
• After-hours transfers
• Government or regulatory fees
• Additional merchandise selected later
• Changes requested by the family
• Travel or repatriation expenses

Your written estimate or contract should identify included items and potential additional expenses.

Before signing an agreement, ask the following questions:

Request an itemized list of the products and services covered by the agreement.

Ask which costs are protected and which will be based on the price in effect when the services are provided.

Ask whether the arrangement is funded through a trust, insurance product or another approved method.

Understand how changes are handled if you later want a different package, urn, service or other arrangement.

Review the cancellation and refund terms carefully.

Ask whether the agreement can be transferred, cancelled or used with another provider.

Your agreement should explain how the arrangement and the funds are protected if the business changes ownership or circumstances change.

Ask about third-party expenses, taxes, transportation, additional merchandise and services that may not be included.

Make sure your family or executor knows which location to call and where your documents are stored.

Your preferences may change over time.

Changes may be possible, but the financial effect will depend on the terms of your agreement and the new products or services selected.

For example, changing from direct cremation to a memorial or traditional service may increase the cost. Removing or replacing an item may also affect the contract.

Always request written confirmation of any changes.

Prepayment may be helpful for some individuals, while others may prefer to document their wishes and leave funds in an estate, bank account or insurance policy.

There is no single approach that is right for everyone.

Your decision may depend on:

• Your financial circumstances
• Your age and health
• Whether you expect to relocate
• The needs of your family
• Your estate plan
• Your comfort with the agreement
• The flexibility you may require

We encourage you to review the information carefully, ask questions and involve your lawyer or financial advisor when appropriate.

Our role is to explain your choices so you can make a decision that feels right for you.

You will receive written information outlining the selected arrangements, the estimated costs and any payment options you choose to explore.