Reliable information can make difficult practical decisions a little clearer. Use this guide as a starting point, and confirm details with the relevant professionals and official bodies.
Inside this guide
Pre-planning is not the same as paying
You can record funeral wishes without paying a provider upfront. Pre-planning documents can identify burial or cremation preferences, important contacts and ceremony ideas. A prepaid arrangement adds financial and contractual obligations. For some people, documenting preferences and keeping accessible savings is more suitable than a long-term contract.
Different arrangements work differently
A prepaid funeral contract, funeral bond and ordinary savings account are different financial and contractual arrangements. Rules about access, cancellation, return of money and protection can vary. ASIC Moneysmart explains some of the alternatives. Do not assume that all products described as “funeral plans” operate the same way.
Ask where the money is held
Find out whether funds are held separately or by an independent entity, what happens if the provider closes, and what rights the family has if the arrangement cannot be fulfilled. Obtain the details in writing. A verbal promise that every future cost is “covered” does not replace contractual terms.
Check future expenses and inflation
A contract may fix only selected funeral goods and services. Cemetery fees, transport distances, levies, disbursements, changes in venue and additional choices may not be covered. Ask what is guaranteed, what can increase and which items family members may still need to pay for.
Clarify cancellation and portability
Consider what happens if the person moves state, changes their wishes, selects another director, or the provider is sold. Understand the cooling-off period, cancellation charge, refund or transfer process. Seek independent advice if terms are confusing or restrictive.
Make the arrangement discoverable
Keep a copy of the signed contract and receipts with important papers. Tell trusted people where to find them and who to contact. Update your details when you relocate or circumstances change so the plan can actually be used if needed.
Frequently asked questions
Is a funeral bond a prepaid funeral?
Not necessarily. Their structures and consumer protections may differ.
Are all future expenses covered by a prepaid plan?
No. Check which costs are fixed, excluded or variable.
Can a plan be transferred after moving?
That depends on the exact contract and provider policies.
Original sources
ASIC Moneysmart: Paying for your funeral ↗NSW Fair Trading guidance ↗Editorial information reviewed October 2026. General guidance only — obtain specific legal, financial or professional advice where needed.
Ready to understand your options?
Compare sourced listings and use our questions checklist before contacting a director.
Compare funeral directors →