• Advance Funeral Arrangements and Pre-Need Funeral Plans
• Certifications for Funeral Service Practitioners
• How to File a Complaint about a Funeral Service Provider
• Colorado Mortuary Science Regulations
• About Cremation
  

The purpose of the funeral -- which can be as conventional or unconventional as you prefer -- is to allow your survivors a time and place to grieve your loss. Arranging your funeral should be done with the same care and consideration that you use when writing a will, planning a wedding, or buying a home.

Making funeral arrangements in advance may lessen survivors' burdens at a difficult time and will help to ensure that your wishes are carried out. If you or a parent is trying to spend down assets to qualify for Medicaid, prepaying for a funeral can also be a smart move because dollars put toward funeral expenses aren't counted as part of your net worth.

Before making any decisions on funeral arrangements or engaging in “preneed” contracts, CFDA recommends that you do a little homework and contact several funeral service professionals in your area. The Colorado Funeral Directors Association web site provides a list of funeral establishment members to use as a reference.

Colorado currently permits two methods of funding for “preneed” funeral plans.

1. With a Trust-Funded preneed contract, a consumer purchases specific funeral services and merchandise at a guaranteed price from a preneed contract seller. A written contract detailing the types of services and/or merchandise being purchased is required. The consumer pays the preneed contract seller a sum of money, either on an installment payment plan or in a single payment transaction. The preneed contract seller is then required by Colorado law to place a minimum of 75 percent of these funds in a trust account with a qualified trustee.
2. Under the Insurance-Funded preneed contract, the consumer purchases a life insurance policy and the policy proceeds are used to pay for the funeral. The funeral home or mortuary is the insurance policy assignee and is paid directly by the insurance company after performance of the preneed contract. All cost increases incurred by the funeral home or mortuary at the time of need are paid out of the benefits from the life insurance policy up to the seller's current price list. It is important to note that these arrangements involve two separate contracts, the preneed contract and the life insurance contract which is used to fund the preneed contract.

Whichever prefunding option you select, be certain that the funeral home, mortuary, cemetery, or licensed insurance producer you choose is licensed with the State of Colorado as a “preneed contract seller.” For more information, log onto the Colorado Division of Insurance web site at: www.dora.state.co.us/insurance  or call 303-894-7499.

Here are some additional consumer caution tips from the Colorado Division of Insurance:

• If it sounds too good to be true, it usually is. Beware of prices that are significantly lower than others you've been quoted.
• Give yourself enough time to investigate; don't be rushed into a decision.
• Examine the policy to determine the actual coverage to make sure the promised benefits are FULLY insured by a licensed insurance company.
• Always pay with a personal or business check, or a cashier's check, not cash.
• Always obtain a receipt for any monies paid.
• A policy will be provided to you, if you have purchased legitimate insurance.

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The National Funeral Directors Association has prepared its NFDA Bill of Rights for Funeral Preplanning to assist consumers in making any decisions on preplanning or prefunding contracts. 

NFDA Bill of Rights for Funeral Preplanning ⁵

An ethical and reputable funeral home will ensure the following rights and protections:

1. Provide you with detailed price lists of goods and services before you make your selections.
2. Provide to you, at the conclusion of the funeral arrangement conference, a written statement listing all of the goods and services you have purchased and the price.
3. Give you a written preneed funeral contract explaining, in plain language, your rights and obligations.
4. Guarantee in the contract that if any of the goods or services you have selected are not available at the time of need, goods and services of equal or greater value will be substituted at no extra cost.
5. Explain in the contract the geographical boundaries of the funeral home’s service area and under what circumstances you can transfer the preneed contract to another funeral home if you were to relocate, or if the death were to occur outside of the service area.
6. State in the contract where and how much of the funds you pay will be deposited until the funeral is provided.
7. Explain in the contract who will be responsible for paying taxes on any income or interest generated by the preneed funds that are invested.
8. Inform you in the contract whether, and to what extent, the funeral home will guarantee the price of goods and services you are purchasing. If the prices are not guaranteed, the contract will explain who is responsible for any additional amounts that may be due at the time of the funeral.
9. Explain in the contract whether and under what circumstances you may cancel your preneed contract and how much of the funds you paid will be refunded.

There are several methods available to pre-pay for a funeral:

• A regulated trust can be established by a licensed funeral director.
• A life-insurance policy can be purchased, equal to the value of the funeral.
• Individuals can establish a savings or certificate of deposit account earmarked for funeral expenses, designated as “payable on death” to the funeral home.

Each method has its advantages. To help determine which option is best for you, make sure to ask your Funeral Director the following questions:

• Who receives the interest on the account?
• Who must pay taxes on the interest?
• Is the prepayment ever refundable, in part or in full?
• Can the plan be used at a funeral home of your choice?
• What happens if the funeral home goes out of business or is sold?
• In the event that you move, is the prefunded plan transferable?

Copyright, National Funeral Directors Association.

At this time, Colorado is the only U.S. state that does not license funeral service practitioners or funeral establishments. Colorado's Legislative Assembly abolished the licensing system in 1982 and the legislature has repeatedly rejected attempts to restore a licensing system, most recently in 2006 when a licensing bill was vetoed by then Colorado Governor Bill Owen.

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The CFSB may assist consumers in resolving complaints. Anyone may  file a complaint, but must do so in writing and must sign the complaint within one year of an incident. The complaint should include a detailed account of the facts involved in the case and should be specific about the expected resolution.  

Written complaints should be addressed to:

Colorado Funeral Service Board (CFSB)
P. O. Box 631664
Highlands Ranch, CO 80163-1664

After someone files a complaint, a CFSB Representative makes a preliminary determination that the complaint is directed against a CFDA member firm or an individual certified by the CFSB, and alleges an act or omission that could violate the association's constitution, bylaws, or standards of practice.

The CFSB representative may attempt to mediate between the parties to reach a mutually agreeable resolution.

The CFSB may decline to take action if the matter is the subject of a complaint filed with another state or involves a legal matter.

The CFSB may recommend that the complaint be reported to legal authorities if it is determined that the matter of the complaint is in violation of the State’s Mortuary Science Code.

The CFSB may also refer the complaint to another entity or jurisdiction, or dismiss it.

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By its Colorado statutory definition¹, "cremation" means:

• The reduction of a dead human body to essential elements through direct exposure to intense heat;
• The processing of the remains, which means the removal of foreign objects from cremated remains and the reduction of such remains by mechanical means to granules appropriate for final disposition; and
• The placement of the processed remains in a cremated remains container.

The Cremation Process

For sanitary reasons, cremations require that the deceased be cremated in a rigid, container made of wood or other combustible material to allow for the dignified handling of human remains. The type of casket or container selected is a personal decision, and many are available in a wide variety of materials ranging from simple cardboard containers to beautifully handcrafted oak, maple or mahogany caskets. 

The casket or container is placed in the cremation chamber, where the temperature is raised to approximately 1400 degrees to 1800 degrees Fahrenheit. After approximately 2 to 2 1/2 hours, all organic matter is consumed by heat or evaporation. The residue which is left is bone fragments, known as cremated remains. The cremated remains are then carefully removed from the cremation chamber.  

Any metal is removed with a magnet and later disposed of in an approved manner. The cremated remains are then processed into fine particles and are placed in the container provided by the crematory or placed in an urn purchased by the family. The entire process takes approximately three hours. Throughout the cremation process, a carefully controlled labelling system ensures correct identification. ² 

The cremains can be interred in a cemetery plot, i.e., earth burial, retained by a family member, usually in an urn, scattered on private property, or at a place significant to the deceased.²

Always check for local regulations regarding scattering in a public place.

If you wish to have a cremation you should ask, “Does the funeral home own the crematory or will the cremation take place with a third party contractor?” ⁴

Many funeral homes do not own their own crematories. These funeral homes use outside crematories and often hire third parties to provide an intregal part of the services which they have sold to a family. As such, the funeral home has a responsibility to the family to ensure that the crematory will carry out the cremation in a legal, professional and ethical manner.

The best method for funeral homes to obtain assurances for the families they serve is to follow a four-step Due Diligence Process recommended by the Cremation Association of North America (CANA), the International Cemetery & Funeral Association (ICFA), and the National Funeral Directors Association (NFDA). ³

Resources for this article:
¹ Colorado Mortuary Science Code, CRC 12-54-101 to 109
² International Cemetery, Cremation and Funeral Association, ICCFA. www.icfa.org/cremation.htm
³ Cremation Association of North America, CANA. www.cremationassociation.org
⁴ End of Life Insights, LLC, Martha L. Thayer, MA, CFSP. www.endoflifeinsights.com
⁵ National Funeral Directors Association, NFDA. www.nfda.com

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