Prepaid funeral plan
There are no requirements to prepay when you prearrange a funeral, but you may wish to consider it. A prepaid funeral, in Ontario is under the jurisdicition of the Funeral, Burial and Cremation services Act, 2002 (FBCSA). A prearranged funeral may be prepaid at Wall-Custance, by means of a contract between you and the funeral director. The monies paid on a prearranged contract are protected by a bonding policy, through the Ontario Funeral Service Association. All monies received for the purposes of the prearranged contract are deposited, in a trust account, with the Guaranteed Funeral Deposits of Ontario and held in trust for the purpose of the prearrangement, in the name of the person the prearrangement is for. The interest earned from the principal sum of money, placed in trust, under the agreement, also stays in the trust account and is used to offset any increase in the cost of the services, merchandise and disbursements, contracted for in the prearrangement. The principal sum and accrued interest remains in the trust account until the death has occurred or a written request for a refund is received.
All monies paid on a prearranged contract remain the property of the investor until our service is provided. The prepaid funeral can therefore be looked upon as an investment which can be withdrawn along with all interest accrued, at the investor's request.
If you move or change your mind, a written request for a refund is all that is required to cancel the contract. All monies including the principal and accrued interest would be refunded.
Prepayment can be made
in a number of ways:
1) By depositing the full amount
2) By paying an agreed upon amount each month or on a time basis, until it is paid in full
3) By making a deposit, to be credited towards the cost of the contracted prearranged services, at the time of need, with the balance being paid by the estate or next of kin
4) Record preferences and give instructions with no money paid in advance of need, but directing that all funeral costs be paid from the estate.
Prepayment of funeral
expenses has some very distinct advantages in estate planning:
1) Funds received for the prepayment of a funeral service contract are deposited in trust, in the beneficiary's name, in accordance with provincial law and subject to government regulation and inspection. Wall-Custance Funeral Home Ltd. guarantees to provide at the time of need, both the casket (or that of no less value, similar in style, design, and construction as the merchandise specified) and the services, previously chosen by the purchaser, without additional charge for said casket and services regardless of the time interval or inflation rate. The prepaid funds, together with all accrued interest generated offset the cost of inflation.
2) The prepaid funds deposited in trust for a prearranged funeral, through Wall-Custance Funeral Home Ltd., cannot be accessed by any individual or government agency.
3) The prepaid funds including all accrued interest is totally refundable at any time for any reason. (A T5 would be forwarded as required by the Income Tax Act, for the interest accumulated on the deposit, at the time of the withdrawal). Wall-Custance Funeral Home Ltd. does not charge any administrative or penalty charges should an individual wish to cancel their arrangements and have the monies refunded.
4) If at the time of death, the funds held in trust plus the accumulated interest should supersede the amount required to supply the merchandise and services contracted for, the excess funds will be paid to the beneficiary's estate, by Wall-Custance Funeral Home Ltd.
5) The interest generated from the trust fund is non-taxable annually to the individual at this time.
6) Prepaying funeral arrangements, to Wall-Custance Funeral Home Ltd. is a legitimate method of reducing one's estate in order to qualify for other available benefits.
7) Prepaying funeral arrangements, to Wall-Custance Funeral Home Ltd. ensures that there will be sufficient funds to carry out the individual's wishes at the time of their death.
8) The funds paid by the purchaser are held in trust and invested, in Ontario, by The Wall-Custance Funeral Home Ltd., directly to Guaranteed Funeral Deposits of Ontario (Fraternal) which is a fraternal society licensed under the Insurance Act. The purchaser receives a copy of the investment receipt provided by GFDO and upon request Wall-Custance Funeral Home Ltd. will disclose, to the purchaser, on an annual basis, the accumulated value of the prepayment funds, the name of the depository, and the form in which the prepayment funds are invested. Wall-Custance Funeral Home Ltd. receives no remuneration from GFDO for the investment of prepaid funds.
9) Upon notification of the death of the beneficiary, the prepaid funds, together with the accrued interest shall be applied by Wall-Custance Funeral Home Ltd. to provide the funeral services set forth in the prearranged contract.
We welcome all enquiries without any obligation. We would be pleased to discuss our "Peace of Mind" prearrangement program with you and give you an itemized accounting at todays prices. You may then make a knowledgeable decision with the confidence that you are making the right choices.
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