Resource Center

Expert Insights header
  Creating change since 1868. Learn more. You earned it. We'll grow it. Busey Wealth Management.
Expert Insights

Prepaid Funeral Arrangements Can Have Grave Consequences

Estate planning ensures arrangements, including funeral and memorial services, are prepared ahead of time for when you’re gone. If the unthinkable happens, planning ahead spares loved ones from the stress of making decisions and relieves them from worrying about money during an otherwise difficult time.

Prepaid Agreement

Consumers have the option to enter into a pre-need agreement with a funeral home—“locking in” costs for future services. You can then prepare the funds through a trust, cash, bonds or life insurance—and at your death, the funds are used to pay for your arrangements.

Before you decide on a prepaid arrangement, ensure you have answers to these questions:

1) Where are the funds you’ve prepaid? Find out if your funds are held safely and if they earn interest over time.

2) What if the funeral home goes out of business? Know what protections are in place to ensure your funds will be available when needed.

3) Can you cancel the agreement? If you can cancel, see if you are eligible for a refund.

4) Can your funds be transferred? In the case that you move, ensure your funds can be transferred to another home and see if there will be additional terms or fees.

The Funeral Rule

If you choose to prepay, the Funeral Rule is in place to protect you and your finances. Enforced by the Federal Trade Commission (FTC), the Rule requires funeral providers to give consumers accurate price information, along with other disclosures about funeral goods and services.

The Funeral Rule regulates funeral providers, but it doesn’t provide protection for consumers who are victims of noncompliant funeral providers. Protections vary widely from state to state, sometimes providing a window of opportunity for unscrupulous operators.

Before entering into a prepaid agreement, take these steps to safeguard your funds and ensure you will receive the services you paid for:

1) Find out what consumer protection your state provides and whether it regulates the payment methods.

2) Keep your funds or insurance policy protected at a reputable financial institution. Ensure you can check on your funds and policy regularly and see if you are entitled to an annual statement.

3) Arrange your excess funds. Ensure your agreement addresses what happens to any excess funds, and plan now to give to surviving family members, charity or another organization.

4) Know your refund terms. If you cancel the contract, you may be entitled to a partial or full refund. Some states allow the funeral provider to retain a portion of the funds, often depending on how long the contract has been in existence.

5) Inform your family of your plans and where you will keep important documents—including your last will and any pre-need funeral arrangement documentation.

Our experienced team of financial advisors are ready to help you prepare for the future. Contact us today or call 1.800.67 l Busey to request your complimentary copy of a Message to My Loved Ones. Our robust planning document will help outline your legacy with simple fill-in-the-blank style questions and sections for additional thoughts and remarks.


Field image


Back to Expert Insights


Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. You should discuss any tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, and are not insured by bank insurance, the FDIC or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. Busey Bank, Busey Wealth Management, and Busey Investment Services are not registered broker/dealers and are independent of Raymond James Financial Services.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Opinions are not necessarily those of Raymond James. The information has been obtained from sources conserved to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

Busey Investment Services
201 W. Main St.
Urbana, IL 61801


  • Rated 5-Star "Superior" by Bauer Financial
  • Busey Bank BBB Business Review
  • Certified Green Business by the Illinois Green Business Association
  • Norton Secured; powered by VeriSign
  • Website powered by Digital Insight
  • Surcharge-free access at any MoneyPass network ATM
  • Equal Housing Lender
  • Member FDIC








With five lines of business—personal, mortgage, commercial, cash management and wealth management—working together as One Busey, we can meet all your financial needs with confidence. Customers who partner with us are rewarded with the Busey Advantage—regional capabilities and local priorities. It's a commitment that has stood the test of time.

On the personal side, Busey Bank promises to make your banking hassle free with smart personal checking and savings accounts, convenient online banking and mobile banking solutions and consumer loans. Whether you are ready to buy your first home or simply want to refinance the one you currently own, our practical home mortgages, participation in a wide range of special loan programs and in-house mortgage expertise mean your home loan is tailored to your individual needs.

From opening your first business checking account or loan to creating a strong succession plan, Busey can help you manage your growing business. Our business banking, lending and cash management solutions give you the tools you need to keep your business successful and nimble. Our participation in a wide variety of specialized programs and in-house credit expertise allow us to tailor commercial lending packages to your unique situation and make faster credit decisions. Busey knows that cash flow is the lifeblood of a business—whether you need help with receivables, payables, liquidity, fraud protection or information reporting, we can customize your cash management solution to your growing business' needs.

You've earned it. We'll grow it. Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations. We build a team of local professionals around your needs to establish the best strategy for your situation. We work closely with you to develop a personal, comprehensive plan that will help you meet your goals and objectives through each phase of the wealth management process.

Innovative Banking. Simplified.

It's your money, and you should be able to access your accounts whether you're out shopping or out of the country.

Busey makes it easy to securely manage your finances whenever you want, wherever you are.

Personal Banking Learn More »

First home. Or dream home.

There's no place like it.

Busey promises to find the home financing that's best for you - whether you're just starting out, tired of renting or purchasing your dream home.

Mortgage Learn More »

A top partner for your bottom line.

You've worked hard to realize your dream of opening a business.

Busey promises to partner with you so you don't have to handle difficult decisions alone.

Business Banking Learn More »

You earn it. We'll grow it.

After years of hard work, you want to see your efforts pay off - literally.

Busey promises to make your money work for you.

Wealth Management Learn More »

Our customers are our neighbors.

When it comes to navigating your unique financial journey, you want a partner who understands who you are, where you came from and where you are headed.

Busey promises expert advice to guide you through every important financial decision.

Resource Center Learn More »

Our roots run deep.

With roots that trace back more than 145 years, our professional farm managers are entrusted to care and maximize value for landowners controlling a combined 100,000+ acres of prime farmland in Illinois.

Ag Services Learn More »

A top partner for your bottom line.

You've worked hard to realize your dream of opening a business.

We'll build a relationship with you so you don't have to handle these difficult financial decisions alone.

 Learn More »

Your Dream. Our Promise.

You have big dreams.

Busey promises to help you realize those dreams.

The Busey Promise Learn More »

Fulfilling Dreams for 150 Years.

Join us as we celebrate our sesquicentennial.

busey150 Learn More »