The difference between prepaying with Cavanagh and a cemetery salesperson could be consequential to your survivors. Cemeteries and Funeral Homes operate on VERY different State rules and regulations.
Funeral Homes, by law, must place 100% of your money in either an IRREVOCABLE TRUST in a banking institution in Pennsylvania to ensure your money is safe guarded and available when your family needs the funds, or you may choose to put your money in an IRREVOCABLE INSURANCE POLICY.
Cemeteries operate under different State rules and regulations and DO NOT have to place in Trust 100% of your money. By law cemeteries only need to place 70% of the money you pay for vaults, caskets, or other merchandise in Trust.
Some cemeteries engage in what is called “CONSTRUCTIVE DELIVERY”, meaning that the cemetery digs your empty grave and installs an empty vault ahead of time, or the cemetery may store a vault or casket for later. Once the empty vault is buried or the casket stored in a warehouse, the cemetery has no legal requirement to place any money in Trust, since the merchandise has been “delivered”.
Make sure that you are fully informed of all the important terms of your preneed contract before signing.