PRENEED FUNERAL UPDATED SET QUESTIONS
AND ANSWERS SET A+
✔✔Burial Space Exclusion - ✔✔Excludes burial property from asset calculations for SSI
and Medicaid.
✔✔Items Covered by Burial Space Exclusion - ✔✔Gravesites, crypts, mausoleums,
urns, vaults, caskets, and similar burial containers.
✔✔Burial Space Exclusion Rules - ✔✔Applies to both revocable and irrevocable
arrangements; physical possession and current existence are not required.
✔✔Future Good - ✔✔An item purchased in advance that has not yet been
manufactured or delivered.
✔✔Burial Funds Exclusion - ✔✔SSI excludes up to $1,500 set aside for burial
expenses.
✔✔Burial Funds Exclusion Applies To - ✔✔Revocable burial contracts, burial trusts, and
separate burial accounts.
✔✔Expenses Covered by Burial Funds Exclusion - ✔✔Embalming, professional service
fees, hearse, cremation fees, and other funeral expenses.
✔✔FTC Door-to-Door Rule - ✔✔Applies when preneed sales occur away from the
funeral home.
✔✔Door-to-Door Cancellation Period - ✔✔Customers have until midnight of the third
business day to cancel.
✔✔Door-to-Door Sale - ✔✔Sale over $25 completed somewhere other than the seller's
place of business.
, ✔✔Consumer Goods and Services - ✔✔Goods or services purchased primarily for
personal, family, or household use.
✔✔FTC Exception - ✔✔Door-to-door rule does not apply if arrangements were initiated
at the funeral home.
✔✔FTC Compliance Requirement - ✔✔Provide the purchaser with a complete copy of
the signed contract.
✔✔FTC Disclosure Requirement - ✔✔The cancellation notice must appear near the
purchaser's signature.
✔✔Notice of Cancellation - ✔✔Purchaser must receive a complete copy explaining
cancellation rights.
✔✔Oral Notification Requirement - ✔✔The funeral director must verbally explain the
customer's cancellation rights.
✔✔Valid Notice of Cancellation - ✔✔Funeral home must honor a properly submitted
cancellation request.
✔✔Negotiable Instrument Rule - ✔✔Funeral home cannot transfer or assign a signed
financial instrument within five business days.
✔✔Repossession Notice Rule - ✔✔Funeral home must notify purchaser at least ten
days before repossessing goods after cancellation.
✔✔FTC Violations - ✔✔Failure to provide contracts, cancellation notices, oral
explanations, or honor cancellations constitutes unfair or deceptive practices.
✔✔Portability - ✔✔The ability to transfer a preneed contract between funeral homes.
✔✔FTC Regulations Affecting Preneed - ✔✔FTC Funeral Rule and FTC Door-to-Door
Rule.
✔✔Wishes of the Deceased - ✔✔Preneed arrangements may conflict with family wishes
if legal authority differs.
✔✔Pre-Funded vs Pre-Planned - ✔✔Pre-funded includes payment; pre-planned
includes only funeral instructions.
✔✔Rights of Next of Kin - ✔✔Depend on state law, designated agents, and any
statement of contrary intent.
AND ANSWERS SET A+
✔✔Burial Space Exclusion - ✔✔Excludes burial property from asset calculations for SSI
and Medicaid.
✔✔Items Covered by Burial Space Exclusion - ✔✔Gravesites, crypts, mausoleums,
urns, vaults, caskets, and similar burial containers.
✔✔Burial Space Exclusion Rules - ✔✔Applies to both revocable and irrevocable
arrangements; physical possession and current existence are not required.
✔✔Future Good - ✔✔An item purchased in advance that has not yet been
manufactured or delivered.
✔✔Burial Funds Exclusion - ✔✔SSI excludes up to $1,500 set aside for burial
expenses.
✔✔Burial Funds Exclusion Applies To - ✔✔Revocable burial contracts, burial trusts, and
separate burial accounts.
✔✔Expenses Covered by Burial Funds Exclusion - ✔✔Embalming, professional service
fees, hearse, cremation fees, and other funeral expenses.
✔✔FTC Door-to-Door Rule - ✔✔Applies when preneed sales occur away from the
funeral home.
✔✔Door-to-Door Cancellation Period - ✔✔Customers have until midnight of the third
business day to cancel.
✔✔Door-to-Door Sale - ✔✔Sale over $25 completed somewhere other than the seller's
place of business.
, ✔✔Consumer Goods and Services - ✔✔Goods or services purchased primarily for
personal, family, or household use.
✔✔FTC Exception - ✔✔Door-to-door rule does not apply if arrangements were initiated
at the funeral home.
✔✔FTC Compliance Requirement - ✔✔Provide the purchaser with a complete copy of
the signed contract.
✔✔FTC Disclosure Requirement - ✔✔The cancellation notice must appear near the
purchaser's signature.
✔✔Notice of Cancellation - ✔✔Purchaser must receive a complete copy explaining
cancellation rights.
✔✔Oral Notification Requirement - ✔✔The funeral director must verbally explain the
customer's cancellation rights.
✔✔Valid Notice of Cancellation - ✔✔Funeral home must honor a properly submitted
cancellation request.
✔✔Negotiable Instrument Rule - ✔✔Funeral home cannot transfer or assign a signed
financial instrument within five business days.
✔✔Repossession Notice Rule - ✔✔Funeral home must notify purchaser at least ten
days before repossessing goods after cancellation.
✔✔FTC Violations - ✔✔Failure to provide contracts, cancellation notices, oral
explanations, or honor cancellations constitutes unfair or deceptive practices.
✔✔Portability - ✔✔The ability to transfer a preneed contract between funeral homes.
✔✔FTC Regulations Affecting Preneed - ✔✔FTC Funeral Rule and FTC Door-to-Door
Rule.
✔✔Wishes of the Deceased - ✔✔Preneed arrangements may conflict with family wishes
if legal authority differs.
✔✔Pre-Funded vs Pre-Planned - ✔✔Pre-funded includes payment; pre-planned
includes only funeral instructions.
✔✔Rights of Next of Kin - ✔✔Depend on state law, designated agents, and any
statement of contrary intent.
