Individuals can purchase, in advance, some or all of their funeral and cemetery merchandise and services through what’s called a preneed contract. Some people choose to only pre-arrange and pre-purchase their cemetery property (interment rights), such as a plot, crypt, mausoleum or niche, while others choose their burial services and merchandise.
A preneed contract allows the consumer to purchase future services and merchandise at current prices. Services available for purchase on a preneed contract include grave openings and closings, marker and vault installations, and other services sold in advance of need. Merchandise available for purchase on a preneed contract include, but are not limited, to items such as caskets, burial vaults, granite bases, markers, benches, vaults, vases, and urns.
When someone enters into a preneed contract with a funeral home or cemetery, they agree to pay for the funeral and cemetery goods and services in advance of their need. This leaves many wondering how they can be sure that the money will be there upon their death to cover these expenses. This is where preneed trusts come into play.