This is a question many people hesitate to ask, but it deserves a clear answer. If you have signed a pre-arrangement and the funeral home closes — whether through bankruptcy, sale, or voluntary closure — what happens to your money?
The trust account protection: how it works
In Quebec, the law requires every licensed funeral home to deposit pre-arrangement funds into a trust account that is entirely separate from the company's operating accounts. This account is managed by an independent trustee — typically a financial institution — not by the funeral home itself.
In practical terms, this means the funeral home cannot use your money to pay its employees, rent, or suppliers. Funds are only released to the business when services are actually rendered. If the business closes before rendering those services, the funds remain in the trust.
What the law provides
The Act Respecting Prearranged Funeral Services and Sepultures (RLRQ, chapter A-23.001) establishes this protection mechanism. The OPC monitors compliance with this obligation. In the event of a funeral home closure, the OPC intervenes to ensure consumer rights are respected and trust funds are preserved or transferred.
In practice: what should you do?
If you learn that your funeral home is closing or has been sold, here are the recommended steps:
- Contact the OPC (1-888-672-2556) to report the situation and understand your rights
- Request a copy of your pre-arrangement contract if you do not have one on hand
- Ask about the possibility of transferring your contract to another funeral home
- Keep all proof of payment and correspondence
The case of a sale or acquisition
Often, a funeral home "closure" takes the form of an acquisition by another company. In this case, pre-arrangement contracts are generally transferred to the new owner, along with corresponding trust funds. You should receive written communication informing you of the change and confirming that your contract remains valid.
Why the trust is a solid protection
The trust mechanism is one of the most important elements that distinguishes Quebec pre-arrangements from simple deposits in an ordinary bank account. Your funds are never commingled with the company's operational funds. This is a strict legal separation, not just a commercial best practice.
Updated: March 2026