"Eligible Funeral Arrangement" can earn you better interest than in a bank

[Ciel]

Yahoo News had this eye-catching item about how to make some tax-free income-have a prepaid funeral plan.

There’s a tax incentive that some Canadians are dying to get.
Income earned on contributions made to an “Eligible Funeral Arrangement” is allowed to grow tax-free under Canada’s Income Tax Act.
“I find that many people do not know of the financial advantages or prepaid funeral plans,” says funeral pre-planner and licensed funeral director Katherine Downey of Legacy Matters. “EFA funds earn two percent tax-exempt interest. This rate of return is better than the current rates on saving accounts and GICs. A woman I worked with had money in her savings account to pay for her eventual funeral arrangements earning 0.5 percent interest. When she learned that her money could be earning two percent in an EFA, she arranged to set up her prepaid funeral and use the money from her savings account to fund her EFA.”

https://ca.finance.yahoo.com/news/th...190718504.html

Another benefit if you reside in Ontario and have a prepaid plan:

People living in Ontario have other financial advantages to planning and paying for their funeral long before they kick the bucket. That province’s Funeral, Burial and Cremation Services Act mandates that funeral homes in Ontario must guarantee the future cost of a fully prepaid EFA.
“Specifically, once a funeral home has received payment in full for the qualifying person’s selected funeral services and merchandise, they are committed to providing those services and merchandise at the time of need in the amount on the current pricelist,” Downey says. “The funeral home cannot levy additional charges to account for inflation.

I think of all the relatives and family friends who only made arrangements when their spouses passed away and maybe thought to ready their own funeral needs in advance as well while dealing with the spousal funeral costs.

[Crochetlady]

Hubby did the prepaid funeral for BIL. We are going next week to prepay our cremations. Would have done it long ago but we needed to save the $$$ first.

[Shwa Girl]

Thanks OP. This information will help a lot of people.
Costco has caskets, urns and flowers too.
http://www.costco.ca/funeral.html