A portion of the amount that you pay for the purchase of prearranged funeral services and the prepurchase of sepultures is kept in a trust account. Amounts are protected and can be recovered should an establishment close or a vendor go bankrupt before the services are rendered.

Deposit of the amounts by the vendor

The vendor has 45 days to deposit, in a trust account, 90% of the amount that you pay him for future services. He must deposit the entire amount when the transaction pertains to the prepurchase of sepultures. He is not required to deposit the amounts for the goods and services that he is providing at the time of the transaction.

Written notice from the banking institution

The banking institution that is keeping the funds has 30 days to notify you, in writing, of the date and amount of the deposit. Should you fail to receive your notice within the prescribed time limit, please contact your vendor. Ask him for the name of the banking institution and demand a written confirmation of the deposit. This confirmation is the only guarantee that the money has truly been deposited in trust.

If the amount is paid in installments, it would be wise to contact the banking institution regularly to check if the vendor is making the deposits. The institution is only required to notify you when the first installment is made.

Interest on your account and types of investments

A portion of the interest generated by the trust account serves to cover inflation. You can trust that you will receive the same quality of goods and services even after many years.

The balance of the account increases at the same rate as consumer prices. As a result, the law forbids vendors to include an indexation clause in the contract.

The amounts placed in trust must be invested safely and be easy to liquidate. For instance, this is the case concerning Treasury bills or bonds issued by the governments.

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Last update : November 24, 2017

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.