# Preneed contract

A term used when buying funeral home.

A prepaid funeral arrangement funded through a trust or an assigned life insurance policy.

The obligation transfers with the business, and it is one of the few liabilities that can exceed the purchase price. A funded book is committed future revenue; an underfunded one is debt you have agreed to service in caskets and staff time. Reconcile the trust balances to the contract ledger yourself, contract by contract for a sample, and price any shortfall dollar for dollar rather than treating it as a rounding difference.

Part of: Buying a Funeral Home (https://searchspheresource.com/guides/buying-a-funeral-home)

Source: https://searchspheresource.com/guides/buying-a-funeral-home/terms/preneed-contract
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt