The Attorney General’s Preneed Funeral Division works to protect consumers by auditing funeral homes and cemeteries that sell preneed contracts and monitoring the sale of preneed contracts throughout the state.
About Preneed Funeral Contracts
A preneed funeral contract is an option that most funeral homes offer to consumers who want to pre-plan and pre-pay for funeral arrangements. The contract – which is made with the funeral home of your choosing – offers pre-selected services and merchandise sold by funeral providers. Pre-payment and pre-planning is one way to ensure your funeral is what you want and can help prevent additional costs to your family members at your time of need. Buyers pay $20 per contract to sellers of preneed funeral services, who forward the registration fee to the State.
Once a preneed contract has been created, the consumer has the right to transfer the contract to another funeral home willing to agree to the terms set forth in the original contract. Consumers seeking preneed funeral services are protected under West Virginia Code § 47-14-1 et seq., which requires funeral homes that provide preneed services to (1) place your funds in a special interest-bearing account within thirty days of deposit unless the contract is funded through an insurance assignment; (2) submit a copy of your contract to the Attorney General’s Preneed Funeral Division; and, (3) periodically report on the status of your contract funds.
To check out the legitimacy of the funeral home you may be doing business with, you can ask to see a copy of their Certificate of Authority. State law requires all funeral homes and cemeteries that sell preneed contracts to hold a Certificate of Authority that must be renewed each year. Additionally, each individual who sells preneed contracts must hold a License to Sell under each location where he or she sells contracts. The License to Sell must be renewed each year as well. Certificates and licensure are issued by the Preneed Funeral Division.
If you, a loved one, a friend, or a neighbor has fallen victim to a preneed contract scam, please contact our office immediately by calling our consumer protection hotline at 1-800-368-8808.
Frequently Asked Questions
Q. Can you switch your preneed contract between funeral homes?
A. Yes. A preneed contract is freely transferable to other funeral homes.
Q. Is your funeral home allowed to substitute items that were pre-selected?
A. Under West Virginia law, substitutions are authorized only if the pre-selected item is no longer available, notice is given and the substituted item is of equal quality and value.
Q. What is the West Virginia Funeral Trust?
A. The West Virginia Funeral Trust was created by the West Virginia Funeral Directors’ Association. The Trust is organized and operated under the trust laws of the State. However, the interest is based on the stock market, so know what you are getting into before you invest.
Q. Are funeral homes required to send a copy of your preneed contract to the Attorney General’s Office?
A. Yes. Funeral homes are required by law to send a copy of your preneed funeral contract to the Attorney General’s Preneed Funeral Division within ten (10) days of signing the contract. Within one month of making your deposit, you should receive a letter from the Division confirming that your contract was received.
Q. How much do average funeral arrangements cost?
A. At today’s prices, it takes around $10,000 to plan and arrange a funeral. With costs increasing every year, this number continues to rise. Approximately one-third of funerals are arranged and purchased ahead of time.
Useful Preneed Contact Information
West Virginia Attorney General Consumer Protection Hotline
1-800-368-8808
File a complaint with the West Virginia Attorney General's Office
West Virginia Funeral Directors Association
304-345-4711
304-345-4712 (fax)
www.wvfda.org
West Virginia Preneed Funeral Trust
304-345-4711