Financing is often what holds people back from acting on their pre-arrangements. Yet there are several ways to pay — and all of them offer the same legal protection through the OPC trust, even for partial payments.
Option 1: lump-sum payment
If you have the funds available, a single payment is the simplest option. You pay the full amount at the time of signing. These funds are immediately deposited into the trust account. The advantage is complete peace of mind: everything is settled, protected, and your family will have nothing to pay.
Option 2: installment payments
Most funeral homes offer the possibility of paying in several installments — monthly, quarterly, or according to a personalized agreement. Each payment is deposited into the trust as it is made. If you die before completing payments, terms vary by contract: some contracts include an insurance mechanism covering the remaining balance; others may require a supplementary payment from the family.
Read the incomplete payment clauses carefully before signing.
Option 3: life insurance assignment
You can designate the funeral home as beneficiary of an existing life insurance policy, or take out a new policy specifically for this purpose. At death, the funeral home receives the insured amount directly and applies it to the pre-arranged services. This option is particularly interesting if you have life insurance you do not need for other purposes.
Option 4: RRSP funds
In some cases, it is possible to direct RRSP funds toward financing pre-arrangements. Tax implications vary based on your personal situation — consult a financial advisor or accountant before choosing this option.
Partial payments are also protected
An important point that is often overlooked: even if you are only making partial payments, each amount paid is protected in the trust. You do not lose prior payments if you stop installments. Accumulated funds belong to you and can be reclaimed according to contract terms.
What you should not do
Avoid setting aside funds in an ordinary bank account with the intention of using them for funeral costs. These funds are not protected, may be drawn on by the estate for other purposes, or may create complications during estate settlement. A formal pre-arrangement is the only way to guarantee that the money will be used exactly as you intend.
Updated: March 2026