A frequent question among consumers who have preplanned their funeral service is "What happens if the funeral home closes?" Fortunately, preneed funds are forwarded to an interest-bearing account with a separate financial institution in the purchaser's name.
The purchaser remains in control of those funds at all times. In the event of a funeral home closing, all account holders must be notified in writing within 30 days. They may then choose to transfer the funds in their preneed account to another funeral home or, if it is a revocable agreement, they may request a refund of their deposits plus all interest earned. The New York State Health Department Bureau of Funeral Directing regulates funeral service and closely monitors this process.