Where does the pre-paid money go before the death and funeral takes place?

There are two ways to pay for prepaid funeral services. First, you may purchase an insurance policy that includes prepaid funeral arrangements, in which case the money will be paid to the insurance company. The other option is to purchase prepaid funeral arrangements directly from funeral home. When you give the money to the funeral home, they must then deposit the money into a trust account (held by a financial institution such as a bank or trust company), where it will earn interest until the contract is fulfilled or cancelled. It is important to note that if you purchase an insurance policy with funeral service coverage, you will still need to make arrangements with a funeral home.