Eligible funeral arrangements can be a tax deferral

An eligible funeral arrangement” , which is established by a qualifying person (i.e. a funeral director or cemetary operator) features three potential lifetime maximum contributions.

A $15,000 maximum exists for those electing funeral services only, including casket, care and transportation of the deceased.

Up to $20,000 can be accumulated if the amounts cover only “cemetery services”. This includes property and services that are funded from a cemetery care trust, established through a provincial act, for the care and maintenance of a cemetery.

Up to $35,000 can be saved if the arrangement combines funeral and cemetery arrangements.

Contributions are not deductible and any interest earned on the accumulated funds in the trust will not be taxable, unless the plan is cancelled by the contributor.

More information can be found in the tax department’s Interpretation Bulletin 531.