If a funeral home closes, what must be done regarding preneed accounts?

Transferring preneed contracts to a designated funeral home is essential when a funeral home closes because it ensures that the commitments made to families are honored. Preneed contracts typically involve prepayment for future services and merchandise, and it’s vital to maintain these agreements for the benefit of those who have made financial investments for their future arrangements.

By transferring these contracts rather than destroying them or simply notifying local authorities, the families involved can continue to receive the services they planned for without disruption. Additionally, this practice helps maintain consumer confidence in the industry, demonstrating that there are safeguards in place to protect individuals' prearranged plans even when a funeral home ceases operations. Communication through media announcements alone does not address the contractual obligations and could leave families without direction or assurance regarding their preneed investments.