Transferring a Pre-Paid Plan: A Practical Guide to Funeral Plan Portability

Life is rarely static. Whether you are relocating to be closer to family, moving for retirement, or simply finding a funeral provider that better aligns with your values, the question of transferring a pre-paid plan often arises. Many consumers mistakenly believe that once they have signed a contract and funded a plan, they are "locked in" to a specific funeral home forever.

In reality, the landscape of funeral planning in 2025 and 2026 is more flexible than ever. With funeral plan sales in the UK reaching a record high of 111,887 in early 2025—a 13.7% increase over the previous year—consumer confidence in portability is growing. Understanding how to navigate this process ensures that your investment remains secure and your final wishes are honored, regardless of where life takes you.

Understanding Funeral Plan Portability

Portability refers to the ability to move the funds and service details of your pre-arranged funeral from one provider to another. In the modern era, particularly following the FCA regulation in the UK and strict State Trust laws in the US, your money is typically held by a third-party trustee or an insurance company rather than the funeral home itself. This structure is designed specifically to allow for transfers.

However, "portable" does not always mean "identical." While the cash value of your plan moves with you, the original price guarantee may not. If you are choosing a pre-paid plan, it is vital to check the portability clauses before signing.

Why You Might Need to Transfer a Plan

There are several practical reasons why a plan holder or their family might initiate a transfer in 2025:

1. Relocation: The most common reason. If you move states or countries, the original funeral home may no longer be able to provide the service.
2. Provider Stability: Consumers often move plans from non-regulated entities to established firms to ensure protection under schemes like the FSCS.
3. Service Preferences: You may decide you want a green burial or human composting (now legal in over 7 US states) which your original provider might not offer.
4. Cost and Value: You might find a provider that offers better value for the same level of service. For a better understanding of how these costs stack up, see our average funeral cost breakdown.

The Step-by-Step Transfer Process

Moving your plan doesn't have to be a bureaucratic nightmare. By following these practical steps, you can ensure a smooth transition of your funds and wishes.

Step 1: The "New Provider First" Rule

The most effective way to transfer a plan is to contact the receiving funeral home first. Because they want your business, they will often handle the entire administrative transfer on your behalf. They have the expertise to contact the original provider and the funding company to facilitate the movement of funds.

Step 2: Verify the Funding Type

Is your plan trust-based or insurance-based?

• Trust-Based: Funds are held in a specific account. When you transfer, the trust is updated to name the new funeral home as the beneficiary.
• Insurance-Based: You have a life insurance policy designated for funeral costs. This usually requires a "Change of Beneficiary" or "Assignment of Benefits" form.

Step 3: Review the Price Difference

Ask the new funeral director for their current General Price List (GPL). Compare it against your original contract. Because funeral costs have reached "all-time highs" in 2025, the funds in your old plan may not cover 100% of the costs at a new home in a different region.

Essential Documents for a Successful Transfer

To make the process as seamless as possible, you should maintain a "Transfer Kit" containing the following documents:

Real-World Examples of Plan Transfers

Example 1: The Cross-Country Move

Margaret purchased a burial plan in New York in 2018. In 2025, she moved to Florida. While her plan was portable, the Florida funeral home’s prices were higher. She used the cash value of her NY trust to pay for 90% of the Florida service and paid a small "top-up" fee to secure a new price guarantee in her new home.

Example 2: The Switch to Direct Cremation

With direct cremation dominating 62% of new plan sales, many families are transferring traditional burial plans into direct cremation plans. Since direct cremations are less logistically complex, these transfers are often the simplest to execute and frequently result in a refund of surplus funds (minus administrative fees).

Example 3: The Green Burial Shift

A family in the UK transferred a plan from a traditional high-street funeral director to a specialist green burial provider. Because their original plan was FCA-regulated, the transfer was seamless, and the funds were reassigned to cover a biodegradable casket and a woodland burial plot. For more on how different plans compare, see our pre-paid plan comparison guide.

Common Mistakes to Avoid

• Assuming All Costs are Covered: Third-party "disbursements" (like crematorium fees or doctor’s certificates) are often not guaranteed. If you move to an area with higher local fees, you may have to pay the difference.
• Losing the Paperwork: This is the #1 obstacle. If you cannot find your contract, contact your state’s funeral board or a plan tracing service.
• Ignoring the "Casket Interest": In some older US trust-based plans, the interest earned on the money may stay with the original funeral home as a "cancellation fee." Always read the "Termination" clause.
• Forgetting Medicaid Status: If your plan was made "Irrevocable" for Medicaid spend-down purposes, ensure the transfer maintains this status. If it becomes revocable, it could count as an asset and disqualify you from benefits.

Conclusion

Transferring a pre-paid plan is a powerful tool that puts the consumer in control. Whether you are moving across the country or simply moving toward a provider that offers more eco-friendly options, your funeral plan is an asset that should work for you, not against you. By keeping your documents organized and contacting your new provider first, you can ensure that your transition is handled with the professionalism and care it deserves.