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What Is a Basic Service Fee and Why Does It Vary So Much Between Funeral Homes?
The “basic service fee” is a charge that all consumers who purchase funeral services from a funeral home must pay, regardless of the optional services they choose. It covers the […]
The “basic service fee” is a charge that all consumers who purchase funeral services from a funeral home must pay, regardless of the optional services they choose. It covers the professional services of the funeral director and staff, as well as other services common to all funerals, such as:
- The initial consultation with the funeral director
- Funeral planning
- Obtaining authorizations
- Filing the death certificate and cremation permit, etc.
- Sheltering the remains
- Coordinating arrangements with the cemetery, crematory or other third parties
- Administrative costs and overhead
The Funeral Rule requires funeral homes to state what is included in their basic service fee and provide the following disclosure in the itemized price list given to the consumer:
This fee for our basic services and overhead will be added to the total cost of the funeral arrangements you select. (This fee is already included in our charges for direct cremations, immediate burials, and forwarding or receiving remains.)
With that being said, the amount of the basic service fee can vary a great deal between one funeral home and another — even those in the same city or town. To compare this fee, you can check the price survey from your local affiliate of the Funeral Consumers Alliance (FCA), which often lists the basic service fees of area funeral homes. The reason for this is simply that each funeral home has a great deal of discretion in determining what it charges for professional services and administrative tasks. The FTC does not limit what a funeral director can charge for consultation and planning, nor does it control what the funeral home charges for sheltering the remains. So each funeral home determines its basic services fee based on factors such as staffing levels and expertise, market conditions, and its typical clientele.
When planning a direct cremation or immediate burial, it is crucial to ask for those packages using those exact words, as adding any other services may allow the funeral home to charge you the full basic services fee instead of the lower, packaged price.
Sources
“Complying with the Funeral Rule”. Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/complying-funeral-rule#:~:text=The%20Funeral%20Rule%20requires%20you,about%20funeral%20goods%20and%20services.
