What happens to any extra money if the funding exceeds the cost of the funeral arrangements?

When the funding for funeral arrangements exceeds the actual costs incurred, the correct understanding is that the funeral home may not be required to return the surplus. This can occur due to the nature of prepaid funeral agreements or trust funds that are established for such purposes. Often, the terms governing these arrangements dictate how any remaining funds are handled after the funeral expenses have been settled.

In many jurisdictions, if the funeral home has appropriately disclosed the terms and conditions regarding the handling of funds, they might retain any surplus for future services or apply it to other accounts related to the family's needs or the operations of the funeral home. This can be especially relevant if indicated in the contract signed by the family at the time of prepayment.

Knowing this helps families understand their rights and potential outcomes concerning prepaid funerals and can guide them in making arrangements that align with their needs and expectations while ensuring compliance with relevant laws and policies.