Ohio distinguishes between pre-need funeral contracts and pre-need cemetery merchandise
and service contracts. A pre-need funeral contract is "a written agreement, contract
or series of contracts" to sell or provide funeral services, goods or any combination
to be used for the funeral or final disposition of a deceased individual. Payment
may be made outright or on an installment basis prior to the death of the purchaser
or the person for whom the services or merchandise have been purchased. A funeral
contract that includes funeral services may be sold only by a funeral director licensed
under Chapter 4717 of the Ohio Revised Code. A pre-need funeral contract may be revocable
or irrevocable. All money prepaid for funeral goods and services is held in trust
for the benefit of the person for whom the contract is made.
A pre-need cemetery merchandise and services contract is "a written agreement, contract,
or series of contracts" to sell or provide "an outer burial container, monument, marker,
urn, other type of merchandise customarily sold by cemeteries, or opening and closing
services" provided in connection with the final disposition of a deceased individual.
Payment for the merchandise or opening and closing services may be made outright or
on an installment basis, prior to the death of the purchaser or the person for whom
the merchandise or services were purchased. A pre-need cemetery merchandise and services
contract does not include any pre-need funeral contract or any agreement or contract
pertaining to the sale of a burial lot, burial, interment or entombment right or any
rights with respect to an endowment care trust. A pre-need cemetery merchandise and
services contract may be revocable or irrevocable. For such contracts, the greater
of 110% of the seller's actual cost or 30% of the seller's retail price of the merchandise,
and 70% of the seller's retail price for the services to be provided under the contract
shall remain intact as a fund until the death of the person for whose benefit the
contract was made or until the merchandise is delivered.