Help with Prepaid Funeral Question

[shooter]

My Mother passed away recently.
She had her bury prepaid, and everything picked out.
It went just like it should have.

While at the funeral home we found out that she, (my mom),
had prepaid a funeral for her younger brother, my uncle.
He wasn't very responsible.
He spent 20 years in prison but, has been out about 15 years and doing well.

The prepaid funeral for him is in North Alabama.
He is married, and living with his wife in Lakeland, Florida.
I ask if the funeral home would honor his burial in Lakeland
with a funeral home in the area when he passes.
Since he wants to be buried with his spouse in Florida.

The answer is no.
He has to be buried in North Alabama., by this funeral home,
and in this cemetery.
The only option I was given was to cash out the prepaid plan.

Well, if I do that, they will only refund 70% of what my mom has paid.
Giving me about a $2200-dollar loss in real cash that she paid out of
her pocket.

The next question.
If it is cashed out, who gets the money?
He didn't contribute to it.
It was all out of my mother's social security check.

Ideals are thoughts appreciated.

Shooter

 

[Newby]

My Mother passed away recently.
She had her bury prepaid, and everything picked out.
It went just like it should have.

While at the funeral home we found out that she, (my mom),
had prepaid a funeral for her younger brother, my uncle.
He wasn't very responsible.
He spent 20 years in prison but, has been out about 15 years and doing well.

The prepaid funeral for him is in North Alabama.
He is married, and living with his wife in Lakeland, Florida.
I ask if the funeral home would honor his burial in Lakeland
with a funeral home in the area when he passes.
Since he wants to be buried with his spouse in Florida.

The answer is no.
He has to be buried in North Alabama., by this funeral home,
and in this cemetery.
The only option I was given was to cash out the prepaid plan.

Well, if I do that, they will only refund 70% of what my mom has paid.
Giving me about a $2200-dollar loss in real cash that she paid out of
her pocket.

The next question.
If it is cashed out, who gets the money?
He didn't contribute to it.
It was all out of my mother's social security check.

Ideals are thoughts appreciated.

Shooter

Shooter, feel free to give me a call, Monday is pretty busy for me so Tuesday or Wednesday would be better. Just look up the phone number on the FexContracting website. I can definitely help you with that. Do NOT cash surrender it.

 

[shooter]

Thanks Newby

 

[adjusterjack]

The only option I was given was to cash out the prepaid plan.

Well, if I do that, they will only refund 70% of what my mom has paid.

She must have signed a contract. Get it and read it to verify the options.

See if it's possible to transfer the contract to another family member.

The next question.
If it is cashed out, who gets the money?

It should go to your mother's estate since she paid for it. Then it will have to be probated and distributed according to her will.

 

[jdeasy]

She must have signed a contract. Get it and read it to verify the options.

See if it's possible to transfer the contract to another family member.



It should go to your mother's estate since she paid for it. Then it will have to be probated and distributed according to her will.

The cash would go to whomever is the owner. If the deceased is the owner then it will go to her estate. The contract may have a succession clause in it?

 

[WinoBlues]

The answer is no.
He has to be buried in North Alabama., by this funeral home,
and in this cemetery.

That does not sound correct. Seems like either legally or traditionally FHs honor other prepaid plans.

Maybe @Newby will give us a summary.

 

[jdeasy]

That does not sound correct. Seems like either legally or traditionally FHs honor other prepaid plans.

Maybe @Newby will give us a summary.

True for traditional preneed. But this sounds anything but traditional. Reads like a contract with that funeral home. Those private treaty deals are out there.

 

[Newby]

I haven’t spoken with him yet, but it sounds like he may have part of it as a funeral, preplan and part of it as a contract for purchased items through a cemetery. There is a huge difference.
The Funeral preplan can always be transferred very easily in the funeral home that sold it has no control over that. As long as it was funded properly through a preneed insurance policy.
The cemetery portion there is a chance that it is non-transferable. Hopefully they didn’t put anything on that other than a grave space. But I’ve seen people buy caskets and vsultd and everything through cemetery contracts, which is not safe to do at all.
But if he gives me a call, I can help him sort out what he can, and cannot do.