Prepaid Funeral Plans in New Brunswick: Your Rights Under the Pre-arranged Funeral Services Act

A prepaid funeral contract is supposed to provide peace of mind — money set aside, arrangements locked in, no decisions left for the family. But when families or executors try to cancel, modify, or transfer a pre-arranged contract in New Brunswick, they frequently encounter funeral homes that charge unauthorized fees, refuse to assign the contract to another provider, or provide vague accounting for where the money actually went.

New Brunswick has specific legislation addressing all of these situations. Here is what the Pre-arranged Funeral Services Act guarantees you.

What Makes a Valid Prepaid Contract in New Brunswick

Under the Pre-arranged Funeral Services Act, all pre-arranged funeral contracts in New Brunswick must use a standardized form — commonly referred to as "Form 2." This form ensures that specific disclosures are made to the purchaser before signing.

A valid Form 2 contract must include:

• A full itemized list of all goods and services covered by the plan
• A clear description of goods and services that are not included (so the family is not surprised at need-time by costs the contract does not cover)
• The total purchase price and payment terms
• Disclosure of the consumer's cancellation rights

If you are reviewing a parent's or spouse's pre-arranged contract and cannot identify which of these elements are present, the contract may pre-date the current regulatory requirements. Older contracts — particularly those signed before consumer protection regulations were updated — have their own transition rules. Do not assume the terms of an old contract are legally enforceable as written.

Where Your Money Goes: The Trust Account Requirement

When a New Brunswick resident pays money toward a pre-arranged funeral contract, the Pre-arranged Funeral Services Act requires the funeral home to:

1. Deposit the funds into a trust account at a licensed financial institution within 10 working days of receiving payment
2. Provide the purchaser with written proof confirming the deposit within 15 working days of receiving payment

This trust requirement protects consumers if the funeral home goes out of business, changes ownership, or faces financial difficulty. The money is legally held in trust — it is not the funeral home's operating capital.

If a funeral home took prepaid money and cannot produce proof of deposit into a trust account, that is a serious regulatory violation reportable to the Financial and Consumer Services Commission (FCNB). The FCNB has authority to investigate and impose penalties.

The 7-Day Penalty-Free Cancellation Window

Within seven days of signing a pre-arranged funeral contract, the purchaser — or their legal representative after the purchaser's death — can cancel the contract with no penalty whatsoever. The funeral home must return all funds in full.

This seven-day right exists regardless of what the contract itself says about cancellation. Any contract clause that attempts to impose a fee within the first seven days is void under New Brunswick law.

Cancellation After 7 Days: The $250 Maximum

If the contract is cancelled after the seven-day window, the funeral home can charge a cancellation penalty — but the law caps that penalty at a maximum of $250.

This is one of the most important consumer protections in New Brunswick's prepaid funeral framework, and one of the most frequently violated. Funeral homes that attempt to charge $500, $1,000, or a percentage of the contract value as a cancellation fee are violating the Pre-arranged Funeral Services Act. The $250 limit is absolute. Any contract clause attempting to impose a higher fee is void.

If you are an executor cancelling a parent's or spouse's prepaid contract and the funeral home quotes a cancellation fee above $250, do not pay it. Put the dispute in writing and contact the FCNB.

The full prepaid amount — minus the $250 maximum cancellation fee — must be returned from the trust account.

Transferring a Prepaid Contract to Another Provider

There is documented history in New Brunswick of funeral homes refusing to transfer prepaid contracts to other providers, sometimes claiming that older contracts were exempt from transfer rules. Whether this is true depends on the specific contract terms and when it was signed. If a funeral home refuses to transfer or assign a contract and you believe this refusal is improper, escalate to the FCNB rather than accepting the funeral home's position without verification.

If the purchaser dies and the family wishes to use a different funeral provider, the right to transfer or cancel (subject to the $250 cap) applies to the estate's representative as well.

What Happens When the Funeral Home Goes Out of Business

Because prepaid funds must be held in trust — not in the funeral home's general accounts — a funeral home closure does not automatically mean the money is lost. The trust funds should be recoverable. In practice, the FCNB handles the regulatory response when a licensed funeral home ceases operations, and will direct families to the process for reclaiming trust funds.

If you cannot locate the trust account information or the funeral home has disappeared, contact the FCNB directly for guidance.

What Prepaid Contracts Do Not Cover

When the death occurs, the family or executor should compare the pre-arranged contract against the actual funeral invoice carefully. Common items that appear in final invoices but are not covered by most prepaid plans include:

• Cemetery costs: Plot purchase, opening and closing fees — these are usually not part of a funeral home contract
• Death certificates: Long Form Death Certificates ordered from Service New Brunswick ($40 online / $45 by mail per copy)
• Government disbursements: Coroner's cremation certificate ($75), burial permit fees
• Obituary and memorial printing
• Flowers, reception costs, honorariums
• Monument, headstone, or grave marker
• Price difference for upgraded casket or urn if costs have risen since the contract was signed, depending on whether the contract is price-guaranteed or not

A price-guaranteed prepaid contract means the funeral home will provide exactly what was contracted at no additional cost regardless of future price changes. A non-price-guaranteed contract means the family may owe the difference between the contracted amount and current prices. Confirm which type the contract is.

Reviewing a Pre-Arranged Contract as an Executor

When you find a pre-arranged funeral contract in a deceased's papers, the steps are:

1. Locate the funeral home named in the contract and contact them immediately
2. Confirm the trust deposit is on record and the amount held in trust
3. Review the contract against the Form 2 requirements to ensure it is valid
4. Decide whether to proceed with the pre-arranged provider or cancel (subject to the $250 cap if outside the 7-day window)
5. If proceeding, obtain the itemized invoice for services actually provided and compare against what was contracted
6. Any services not covered by the prepaid plan become at-need charges

Keep the original contract in a secure location throughout this process. It is the definitive record of what was pre-purchased.

Prepaid funeral contracts are one of the more complex consumer protection areas in New Brunswick — and one where families most frequently lose money due to unauthorized fees or confusing contract language. The New Brunswick Funeral Laws & Consumer Rights Guide includes a complete contract audit checklist, a cancellation letter template, and the exact FCNB complaint process so you have the tools to enforce your rights without needing a lawyer.

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