Pre-planning a funeral or celebration of life in Ontario: pre-arranging, prepaying and your rights

Planning ahead spares the people you love many decisions at a hard time, and gives you a say in how you will be remembered. In Ontario, the rules on pre-arranged and prepaid funerals come from the Bereavement Authority of Ontario (BAO), which licenses funeral homes, transfer services, cemeteries and crematoriums. This guide follows its consumer information guide.

Why plan ahead?

According to the BAO, planning ahead:

• saves your family and friends from making many difficult decisions while they grieve;
• gives you a say in your own arrangements;
• gives you time to compare your options;
• and, if you prepay, can reduce or remove the financial burden on your family.

Pre-arranging or prepaying: what is the difference?

Pre-arranging means choosing your supplies and services with a BAO-licensed provider without paying anything upfront. Some providers keep a record of your arrangements at no cost.

Prepaying means signing a contract and paying in advance, in one of two ways:

1. A trust: you pay the provider, and the money is held for you in trust at a bank, a trust company or with an independent trustee. It earns income until it is needed.
2. Insurance or an annuity: you buy a policy that pays the provider at the time of death. You still need a contract with the provider, and the policy sets its own rules on fees, cancellation and refunds.

The BAO advises asking your provider about the advantages and disadvantages of both options, and about any fees, interest, financing and cancellation charges. In most cases, paying in full costs less than paying over time.

What if prices go up?

At the time of death, the money in trust (or the insurance proceeds) pays for what the contract lists, at prices in effect then. Prepaid contracts signed on or after July 1, 2012 must be guaranteed: as long as you have met the terms of the contract, your estate will not be asked to pay more for those supplies and services. Taxes are not guaranteed, and anything not in the contract is paid separately.

If money is left over once everything in the contract is paid, it goes to the estate. For funeral and transfer service contracts entered into after July 1, 2012, you can name a person to receive it.

Can you cancel or change a prepaid contract?

Yes. You, your legal representative or another person named in the contract can cancel or change it at any time before the supplies or services are provided, by giving the provider notice in writing. For a contract funded by a trust:

• within 30 days of signing, you get a full refund;
• after 30 days, you get a refund with the income earned, but the provider may keep 10% of the amount paid, up to $350, and the value of anything already provided.

Cancelling a prepaid contract does not necessarily cancel an insurance policy that funds it: check the insurer's own rules first.

How is your money protected?

Ontario law protects prepaid money in several ways:

• your provider must give you a contract stating the total you have paid and the terms for any balance;
• money prepaid to a licensed funeral establishment or transfer service is covered by a compensation fund if, in rare cases, it is not available when needed;
• trust money must be invested safely, and you may ask your provider at least once a year where it is invested and how much is in your account;
• an insurance policy is protected under the Insurance Act.

What happens at the time of death?

Your legal representative, such as your estate trustee, takes your pre-arrangement documents to the provider. If a supply or service is no longer available, the provider may make a reasonable substitution of similar value at no extra charge, or that part of the contract can be cancelled or replaced.

By law, your legal representative may change your pre-arranged plans. Talk about your wishes with them and with your family, and keep your contract, receipts and any interment rights certificate where they can find them.

Planning the ceremony itself

A contract covers supplies and services. The ceremony is also worth writing down: whether you would like a funeral, a memorial or a celebration of life, religious or not, the readings, music and people you would like to speak, and anything you would rather avoid. Share these wishes with your family so they can pass them on to whoever leads the ceremony.

Celebrance does not sell prepaid funeral contracts: those come from BAO-licensed providers. When the time comes, we can connect your family with a celebrant from our local network who will build the ceremony from your wishes. See our celebrants for funerals and celebrations of life.

Sources: thebao.ca: consumer information guide · thebao.ca: bao cig eng july2025.pdf · thebao.ca: consumer rights