What happens to your pre-need plan if you move?

Florida has one of the highest rates of interstate migration in the country. Retirees move here. Families move away. Snowbirds split time between two states. And a lot of these people have pre-need funeral plans — either here or in the state they came from.

The question is simple: what happens to that plan when you're not where you set it up?

Trust-funded pre-need plans are governed by Florida state law. The trust is held by a Florida-regulated trustee, and the contract is between you and a Florida funeral home.

If you move to another state, you generally have a few options:

• Keep the plan in Florida. If you still have ties here — family, a second home, a preference for being laid to rest in Florida — you can keep the plan active. Your family would coordinate with the Florida funeral home when the time comes, even if you pass in another state. This usually involves transporting remains to Florida, which adds cost.
• Transfer to a funeral home in your new state.This is where it gets complicated. Florida funeral homes are not required to release trust funds to an out-of-state provider. Some will, some won't. The receiving state may have different regulations. Transfer fees and administrative costs can eat into your funds.
• Cancel the plan (if revocable).If your plan is revocable, you can cancel and receive a refund — but you may lose a portion to administrative fees and you'll lose any price lock you had.
• If irrevocable: You typically cannot cancel. The funds are locked in. Your best option may be to keep the plan in place and have remains transported back to Florida, or negotiate a transfer with the funeral home.

Same situation in reverse. A trust-funded plan from New York, Ohio, or Michigan is governed by that state's laws, held by that state's trustee, and contracted with a funeral home in that state.

Your options are essentially the same: keep it in the original state, try to transfer (which may or may not work), or cancel if the contract allows it.

The key question to ask:"Is my pre-need contract transferable to an out-of-state provider?" Get the answer in writing before you move.

This happens more often than people expect — someone with a Florida pre-need plan passes away while visiting family in another state, or while traveling.

• The plan can still be used — but your remains need to get to the funeral home named in the contract. This means your family will need to arrange transportation of remains from the state where you passed to Florida. This typically costs $1,500–$5,000+ depending on distance.
• Some plans cover transportation.Check your contract — some pre-need plans include a transportation benefit. If yours doesn't, this is an out-of-pocket cost for your family.
• Alternatively, your family could work with a local funeral home in the state where you passed and try to transfer the funds from your Florida plan. But again — this is not guaranteed and depends on the contract.

This is one of the biggest advantages of insurance-funded pre-need plans. Because the plan is backed by a life insurance policy that you own, you can:

• Change the beneficiary funeral home at any time — including to a provider in a different state
• Keep the policy active regardless of where you live
• Have the insurance pay out to whatever funeral home your family chooses at the time of need

If portability is a priority — and it should be if you're someone who might move, travel frequently, or split time between states — an insurance-funded plan is generally the safer choice.

If you're considering a pre-need plan and there's any chance you might not be in the same state for the rest of your life:

• Ask about transferability before you sign anything. Get it in writing.
• Consider an insurance-funded plan over a trust if portability matters to you.
• Document your wishes separately — regardless of how you fund the plan. Use our planning tools to create a detailed plan that your family can access from anywhere. Even if the funding is complicated, your wishes are clear.
• Review your plan every few years — especially after a move. Make sure the provider is still in business, the plan still covers what you need, and your family knows where to find everything.

Pre-need funeral contracts in Florida are regulated by the Florida Department of Financial Services, Division of Funeral, Cemetery, and Consumer Services. If you have questions about a pre-need contract or believe a provider isn't honoring their obligations, you can contact them at:

Florida Department of Financial Services
Division of Funeral, Cemetery, and Consumer Services
(850) 413-3039