In this week’s news are yet more examples of why giving your money to a funeral home for a prepaid arrangement isn’t usually a wise “investment.”
In West Virginia, the attorney general has filed a lawsuit against owners of Galens-Harding Funeral Home, alleging that they filed false death claims for 108 still-living individuals who had pre-paid arrangements, in order to access the funds.
In Massachusetts, former funeral director Joseph O’Donnell was sentenced to prison for stealing from pre-paid funeral plans as well as stashing bodies meant to be cremated.
Outright theft of your prepaid funeral money isn’t the only problem. Most states allow funeral homes to pocket a portion of your prepaid funds instead of putting it all away in trust. Taking a commission off the top is like paying yourself today from tomorrow’s profits. State laws that allow this encourage irresponsible business practices that threaten both consumers and the long-term health of funeral homes.
