What happens to the funds in a preneed trust if the funeral services are not used?

In Tennessee, if the funeral services paid for through a preneed trust are not ultimately used—for example, if the individual passes away in a different location or chooses a different provider—the funds that were placed in the trust are typically returned to the estate of the deceased or distributed to designated beneficiaries. This ensures that the family's financial plans are honored and that the funds are not lost or forfeited if the intended services are not provided.

Returning funds to the estate or beneficiaries respects the contractual nature of preneed agreements and upholds the rights of individuals and their families to reclaim their assets if they were not utilized for the intended purpose. This approach reinforces consumer protection measures in the funeral industry, establishing a clear guideline for the management of preneed funds for deceased individuals.