She Prepaid for Her Funeral in Ohio, Then Moved to Florida to Be Near Her Kids. Getting That Money to Follow Her Wasn’t Simple

At 70, a woman we’ll call Carol paid in full for a preneed contract. She used her hometown Ohio funeral home so her kids would never get the bill. A few years later she moved to Florida to be near them, and the funeral she paid for is still sitting with a funeral home several states away.

Plenty of people end up where Carol did. IRS migration data show 13,170 tax returns, covering 21,767 people, moved from Ohio to Florida in the 2022 to 2023 period. That made Florida Ohio’s top destination. Buyers rarely plan for a move.

One Reddit user was considering a prepaid package. They wrote, “I know people that purchase funeral packages when they are in their 60s.” The thinking is that it makes things easy for family. A move can make it harder.

1. Profile: retired, early to mid 70s
2. Asset at interest: a paid-in-full preneed contract held by an Ohio funeral home
3. New home: Florida, near adult children
4. Decision: transfer the contract, cancel it, or leave it alone

Your Price Guarantee Probably Stays Behind

A preneed contract gets its money from one of two places: a trust or an insurance policy. In Ohio, trust money has to be held by a licensed trust company, bank or credit union. Each contract gets its own trust unless the buyer agrees to combine them (Ohio Rev. Code 4717.36).

The next question is whether the contract is revocable or irrevocable. Revocable means you can cancel and get money back. Irrevocable means you can’t cash out, and people often choose it to protect Medicaid eligibility. Ohio law says a contract can’t stop a buyer from making it irrevocable. Once it is, the funeral director who sold it is legally obligated to provide the funeral on its terms (Ohio Rev. Code 4717.34).

The money can move, but the price guarantee came from that particular Ohio funeral home, and a Florida home that takes the funds will charge its own current prices. Say Carol paid $8,000 and a Florida home prices a similar service at $11,000. Her balance covers the $8,000 plus any trust growth, and her kids owe about $3,000.

Canceling has its own costs. Ohio lets sellers of guaranteed-price trust contracts charge an initial service fee of up to 10% of payments. On Carol’s contract that’s about $800, so ask whether you get it back if you cancel.

Three Paths, Ranked by What They Cost

Transfer to a Florida Funeral Home

Ohio’s S.B. 196 lets people who bought irrevocable contracts transfer them to another funeral home that’s willing to provide the services. For insurance-funded irrevocable contracts, the buyer notifies the original seller, which must assign its rights to the new home within 15 days. The money stays set aside for the funeral and keeps its irrevocable status. Expect the old price guarantee to disappear. This path works best for irrevocable holders and anyone who is on Medicaid or may need it.

Cancel and Buy a New Florida Plan

For a revocable, insurance-funded Ohio contract, the buyer mails written notice to the seller and the insurer. After 15 days, the buyer can cancel and change the policy’s beneficiary. A new Florida contract falls under Florida law, which allows cancellation within 30 days. Florida’s regulator says services and cash advances can be canceled at any time for 100% of the price paid. This path fits revocable holders who don’t need Medicaid planning and want a new price lock with a local funeral home.

Leave It in Ohio

This only makes sense if Carol wants to be buried in Ohio. Otherwise it’s the weakest choice. Her family would have to pay for transport and work with funeral homes in two states while they’re grieving.

The money isn’t in the funeral home’s hands. If the Ohio home closes down or is sold, the trust and insurance rules exist to keep it that way. Ohio also set up a Preneed Recovery Fund to protect consumers from fraud. If the home is sold, get written confirmation that the new owner will honor your contract.

What to Settle Before Signing or Moving

First, find out two things: whether your contract is revocable or irrevocable, and whether a trust or an insurance policy funds it. Every option depends on those answers. A frequent mistake is assuming the price guarantee moves with you. Families usually find the gap at the funeral home, when it’s hardest to deal with.

1. Revocable or irrevocable? Ask whether you can convert it, and whether converting affects Medicaid planning.
2. Who holds the money? Get the name of the trustee or insurer and a current balance statement in writing.
3. To see what happens to the guarantee if you transfer, ask the receiving home for its current price list and compare it with your balance.
4. What does canceling cost? Ask about service fees and whether you’d get them back.
5. What if the home closes down or is sold? Confirm where the funds sit and which state agency to contact if something goes wrong.

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