Prepaid Contracts

  • Prepaid contracts for funeral and cremation services are governed by the Funeral and Cremation Services Act, (FCSA) and include services incidental to interment.
  • Following the issuance of a prepaid contract a funeral home will immediately place your funds in a separate, interest bearing account at a chartered financial institution.
  • An Eligible Funeral Arrangement (EFA) is defined in Section 148.1 of the Canada Tax Act provides for trusted funds to compound tax free. When the accrued balance is used for funeral expenses, the growth is not taxed. Consult with your licensed funeral provider for further details.
  • A buyer may cancel or transfer a prepaid contract to another funeral home at any time. Your rights regarding cancellation are covered in Section 81, FCSA. Your rights regarding transfers are covered in Section 6 of the Regulations.
  • The funeral home may withhold an administration fee as set out in Regulation 10.
  • Buyers should be aware that there may be income tax implications on interest earned on trusted funds if these monies are returned to the buyer. Consult your funeral provider or other tax professional.
  • The funeral home will return to you or deduct for any personalized or unique goods that were specially ordered and cannot be used by another person.