What happens when a prepaid contract is revoked according to its terms?

When a prepaid contract is revoked according to its terms, the balance is typically paid to the purchaser. This is an important consumer protection element that ensures individuals who have entered into a prepaid funeral contract have the right to recover their money if they choose to withdraw from the agreement.

In many jurisdictions, including Vermont, laws governing prepaid funeral contracts are designed to protect the interests of consumers. Upon revocation, the funds that were initially deposited or paid for the funeral services must be returned to the individual who entered into the contract, allowing them to retain their financial investment. Thus, having the balance refunded can provide peace of mind and flexibility for consumers who may change their minds about their plans.

Understanding this process is crucial for both consumers and funeral service providers, as it emphasizes the responsibility of providers to comply with the legal obligations surrounding prepaid contracts.