July 17, 2019

Prepaying Your Funeral

MOST ONTARIO FUNERAL HOMES WILL ALLOW YOU TO PREPAY YOUR FUNERAL

Additionally you can pre-plan your funeral. For more information on this click HERE

The funeral prepayment does not go to the funeral home before your death. In Ontario, historically prepayments were held in GIC investments in trust for the customer. These days, prepaid funerals may be funded through a life insurance contract.

The prepayment can be made in a lump sum or by monthly payments. Most funeral homes will guarantee that the price of the funeral you have selected will not exceed the amount received from the prepayment, even if inflation has increased the cost of the funeral significantly. In many cases, the prepaid funeral can be transferred to another funeral home if you have moved between when the funeral was prepaid and when you die.

Any interest or other income generated from the prepayment is not taxable prior to your death. If your prepaid plan exceeds the cost of the funeral, the surplus is paid to your estate. Income tax may be payable on that amount.

CONTACT US

Feel free to contact us at any point for assistance or advice with respect to Estate Law, Estate Planning, Estate Administration or Estate Litigation. We may be reached at 705-435-4339 / 1-877-85LEGAL (1-877-855-3425) or contact us via email.