Ohio’s Funeral Laws to Change in Mid-September: Here’s What You Need to Know

Preneed Funeral Contract Reforms Come To Ohio

Ohio Funeral Laws Set To Change – How This Impacts The Preneed Funeral Contract

“Not only is S.B. [Senate Bill] 224 a business-friendly proposal, but it is a consumer-friendly proposal,” states State Senator Jerry Cirino, who sponsored the bill.

On March 16, 2022, the 134th General Assembly passed a bill containing several reforms to Ohio’s funeral laws. While S.B. 224 covers several reforms to funeral laws, the three most important are as follows: (1) reforms to preneed funeral contracts, (2) reforms to ID tags for cremated remains, (3) reforms to unclaimed crematory remains when a funeral home permanently closes, and (4) changes to funeral procedures. To discover what other interesting changes S.B. 224 will implement to funeral law, click here to read the full bill.

1. Reforms to Preneed Funeral Contracts

What is a Preneed Funeral Contract?

S.B. 224 mentions preneed funeral contracts, but what is a preneed funeral contract? Simply put, a preneed funeral contract is a contract for certain funeral services or goods that are paid for by someone prior to their death. A preneed funeral contract can be paid for directly, funded through insurance, or even funded through an annuity.

If someone decides to pay for a preneed funeral contract directly, the money is placed in a preneed funeral contract trust. The trustee of that trust is generally a federal bank, a state-licensed trust company, or even a state-licensed credit union.

How Does S.B. 224 Changes Preneed Funeral Contracts?

With respect to preneed funeral contracts, the most notable changes are as follows: * Required, whenever there are funds left over following performance of a preneed funeral contract, the holder of the funds to pay the remaining funds to the seller of the contract, who then must deposit those funds into a trust or purchase insurance or annuity policies to fund additional preneed contracts.

• Adds the person with the right of disposition of the deceased person’s body as possible payee for purposes of the continuing requirement that, if funeral goods or services are provided by someone other than the seller of a preneed funeral contract that was funded by a trust, the seller direct the trustee to pay the money in trust to certain persons.
• Authorizes a mistaken payee of funds intended to fund a preneed funeral contract to sign over the mistaken payment to the appropriate entity.
• Allows the $10 preneed funeral contract fee to be paid by any method, including cash.
• Requires the State Board of Embalmers and Funeral Directors to study the trusting requirements in other states relating to caskets purchased on a preneed basis and to report its finding to the General Assembly within three months after the bill’s effective date.

With respect to unclaimed funds, the most notable changes to the Unclaimed Funds Law are as follows:* Funds held pursuant to a preneed funeral contract upon the contract beneficiary’s 105th birthday, unless the holder, seller, or successor seller demonstrates to the Director of Commerce that the beneficiary is still alive;

• Funds held pursuant to a preneed funeral contract 30 days following the beneficiary’s 95th birthday if the holder, the seller, or successor seller is unable to confirm that the beneficiary is still alive;
• Excess preneed funeral contract funds that the trustee was unable to pay to the beneficiary’s estate or person with the right of disposition within 180 days of learning of beneficiary’s death.
• Requires the holder of funds for a preneed funeral contract to, at least 30 days prior to the beneficiary’s 95th birthday, contact the seller or successor seller to inform the seller or successor seller of the beneficiary’s upcoming 95th birthday.
• Requires the holder and the seller or successor seller to agree that one of them will attempt to confirm that the beneficiary is still alive.
• If it cannot be confirmed that the beneficiary is still alive within 30 days following the beneficiary’s 95th birthday, requires the holder to report and remit the funds to the Director of Commerce in accordance with the Unclaimed Funds Law.

2. Reforms to ID Tags for Cremated Remains

S.B. 224 also reforms the procedure for identifying cremated remains. Under current law, funeral directors, or people with the right of disposition of a body, must place an identifying tag in any vessel that contains the cremated remains. Now, an ID tag is only required if the vessel contains either all the cremated remains or at least 10 cubic inches of cremated remains.

3. Reforms to Unclaimed Crematory Remains when a Funeral Home Permanently Closes

S.B. 224 also changes what happens to unclaimed crematory remains when a funeral home is permanently closed. At least 30 days before the permanent closure of a funeral home, written notice must be sent to the last known address of the person who either executed the cremation authorization or has been designated to receive the cremated remains. These notices must contain the following: (1) the date of closure, a statement the funeral home or crematory is permanently closing, and (3) the manner by which the cremated remains will be disposed and where to retrieve the cremated remains if applicable.

Within 30 days of permanently closing, a funeral home must dispose of the unclaimed cremated remains as specified in the notice. If the cremated remains are unclaimed for at least 60 days, the funeral home that is permanently closing must dispose of the remains in a manner consistent with Ohio laws.

Further, S.B. 224 mandates permanently closing funeral homes to send a clear account of all unclaimed cremated remains as well as a copy of the written notices. Failure to comply with these requirements could result in a fine ranging from $100-$5,000, imprisonment of up to one year, or both.

4. Changes to Funeral Procedures

S.B. 224 also makes changes to various funeral procedures.

First, there will no longer be a requirement that funeral directors, embalmers, or crematory operators conspicuously place their names at the front of their respective facilities.

Second, funeral hearses and other funeral escort vehicles may now display flashing, oscillating, or rotating purple lights. This purple light may also accompany the amber light that is already authorized in Ohio.

While these reforms will not take effect until mid-September 2022, it will be interesting to watch these laws take effect, and see if these laws really will, as Senator Cirino promises “benefit the more than 900 funeral homes in the state of Ohio, while simultaneously ensuring consumer protections.”

I want to thank Mackenzie Reiber who is externing with our firm for the Summer. Mackenzie is a second-year law student at the University of Dayton School of Law. She will be graduating in May of 2023. Thanks for the great job on this blog Mackenzie!

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