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Plackers

Member
What is the name of your state? New York
Our family paid for funeral arrangements in advance for a disabled family member (now deceased) in 2001 with a CD in trust to the Funeral Home that has accumulated interest exceeding the funeral cost. Is the Funeral Home obligated to refund that interest?​
 


Zigner

Senior Member, Non-Attorney
What is the name of your state? New York
Our family paid for funeral arrangements in advance for a disabled family member (now deceased) in 2001 with a CD in trust to the Funeral Home that has accumulated interest exceeding the funeral cost. Is the Funeral Home obligated to refund that interest?
Review the contract.
 

adjusterjack

Senior Member
I was hoping to get input before approaching them.
Then you're going to have to explain things better. Like what the deal was all about in 2001? Who owns the CD? How was the CD used to make payments to the funeral home? Why wasn't this addressed when the funeral home was paid?
 

Zigner

Senior Member, Non-Attorney
Plackers: Are you saying that you arranged with the funeral to set up a CD that would be payable to them upon the death of your relative? Or, are you saying that the funeral home took your payment and then set up a CD?

If the former, then there must have been some sort of agreement.
 

zddoodah

Active Member
No Contract
There was a contract for specific arrangements, but no contract regarding CD
Ummm...ok. So you (or someone) bought a CD. Was it you or someone else and, if the latter, who was it? What did you mean when you wrote that the CD was "in trust to the Funeral Home"?

If there was no contract with the funeral home that provided for payment of the interest, then it is beyond unlikely that the funeral home has any obligation to pay the interest to anyone.

My guess is that your now-deceased relative bought the CD and named the funeral home as pay-on-death beneficiary. If that's the case, then the interest almost unquestionably belongs to the funeral home, unless some contract said otherwise (which you said isn't the case).
 

Zigner

Senior Member, Non-Attorney
Ummm...ok. So you (or someone) bought a CD. Was it you or someone else and, if the latter, who was it? What did you mean when you wrote that the CD was "in trust to the Funeral Home"?

If there was no contract with the funeral home that provided for payment of the interest, then it is beyond unlikely that the funeral home has any obligation to pay the interest to anyone.

My guess is that your now-deceased relative bought the CD and named the funeral home as pay-on-death beneficiary. If that's the case, then the interest almost unquestionably belongs to the funeral home, unless some contract said otherwise (which you said isn't the case).
Nope - read the link that Quincy provided. It address the CD's

ETA: The funeral home must pay to the county any excess left in the account.
 

PayrollHRGuy

Senior Member
From that link @quincy posted

If moneys are left in an irrevocable account after the payment of the funeral expenses, is the money returned to my estate?
No, any moneys left in an irrevocable account must be paid to the county.
 

Zigner

Senior Member, Non-Attorney
From that link @quincy posted

If moneys are left in an irrevocable account after the payment of the funeral expenses, is the money returned to my estate?
No, any moneys left in an irrevocable account must be paid to the county.
From the same link:



What is a "non-guaranteed" funeral?

With a non-guaranteed funeral, the funeral home provides the items and services you selected, at the rates being charged at the time of your funeral. The principal and interest of your account will be applied to the home's total charges. If this amount does not cover the expenses, your estate will be charged the difference If the amount in your pre-need account is greater that your funeral costs, the excess money will be refunded to your estate.

Depending on how it was set up, the interest may go back to the estate, as was pointed out above by Quincy.
 

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