⚖️Understanding Funeral Industry Regulations: A State-by-State Comparison
By InfinityUrns | Updated: September 2025
The funeral industry — sometimes referred to as the death care industry — is heavily regulated in the U.S., but not in the same way everywhere. While federal laws like the FTC Funeral Rule offer some baseline protections, the vast majority of funeral-related regulations are set by individual states.
The result? A complex patchwork of rules, with some states requiring strict oversight and professional licensure, and others giving families more freedom to manage funeral arrangements themselves.
In this post, we break down:
● Common regulatory themes across the U.S.
● Key differences from state to state
● Why these variations matter for families, funeral directors, and policymakers
🪪 Funeral Licensing: Who Needs a License, and Where?
Most states require funeral homes, directors, and embalmers to be licensed — but the scope and structure of these requirements vary significantly.
States with Comprehensive Licensing
States like California, Florida, Illinois, Georgia, and New York require licenses for:
● Funeral homes
● Funeral directors
● Embalmers
These licenses often come with education, training, and exam requirements. In New York, however, embalming isn’t separately licensed — funeral directors are trained in embalming as part of their broader credentials.
States with Flexible or Partial Licensing
In Hawaii, funeral homes that don’t perform embalming may be exempt from certain licensing requirements. Not all funeral directors are required to be licensed either. Alaska, Arizona, and Indiana maintain stricter standards, licensing both directors and embalmers with formal oversight.
Case Spotlight: Colorado’s Big Shift
Until 2024, Colorado had some of the weakest funeral industry regulations in the country — no licensure for directors or embalmers, and little to no inspections. But after a series of public scandals involving decomposing bodies and cremation fraud, the state passed sweeping reforms.
As of 2024, Colorado now requires:
● Mandatory licensure
● Background checks
● National exams
● Routine facility inspections
🧾 Are You Legally Required to Hire a Funeral Director?
One of the biggest legal differences across states is whether families must hire a licensed funeral director to complete certain tasks — like filing death certificates, securing burial permits, or transporting a body.
States Where Funeral Directors Are Required
In states like:
● Connecticut
● Illinois
● Indiana
● Iowa
● Louisiana
● Michigan
● Nebraska
● New Jersey
● New York
…it’s the law: families must hire a licensed funeral director for essential steps in the death care process.
States Where DIY Funeral Care Is Allowed
In contrast, Virginia, Hawaii, and (until recently) Colorado allow families to take on many of these roles themselves.
In Virginia, for example, family members can:
● File the death certificate
● Transport the body
● Arrange burial or cremation directly
This makes the state one of the most DIY-friendly in the country for home funerals and personalized arrangements — assuming all legal conditions are followed.
🔍 Inspections and Oversight: Not All States Are Equal
Another big point of variation is how often — or if — funeral homes are inspected.
States with Regular, Unannounced Inspections
States like California and Florida have dedicated regulatory boards that conduct routine, surprise inspections of funeral homes and embalmers.
States with Minimal Oversight
Before its reforms, Colorado had no required inspections, allowing some businesses to operate in unsafe or unethical conditions.
Enforcement Powers Vary
Some states give their licensing boards the authority to:
● Suspend or revoke licenses
● Impose fines
● Shut down violators
Others have weaker enforcement tools, meaning that even when violations are found, consequences may be limited. But public demand for accountability is growing — and some states are responding with stricter enforcement.
🏢 Ownership Rules: Who Can Run a Funeral Business?
States also differ in who can own or operate a funeral home or cemetery — and whether the same company can do both.
States That Prohibit Cross-Ownership
Michigan and Wisconsin prevent cemeteries from owning funeral homes (and vice versa). These laws aim to reduce potential conflicts of interest or upselling pressures.
States That Allow It (With Conditions)
Florida and Texas permit vertically integrated operations, but require:
● Clear disclosure
● Transparent pricing
● Consumer protections
This model can offer convenience — but only if ethical standards are upheld.
🔁 Notable Exceptions and Recent Changes
📍 Colorado: From Light Regulation to Full Reform
Prompted by multiple scandals, Colorado enacted major legislative reforms in 2024. The new laws require:
● Licensure for all professionals
● Facility inspections
● National exam passage
● Penalties for noncompliance
Colorado went from being one of the least regulated states to one of the most.
📍 New York: Streamlined Licensing
Since the 1960s, New York has not separately licensed embalmers. Funeral directors are trained in embalming as part of their license — reducing redundancy, but also concentrating regulatory authority.
📍 Virginia: A DIY Model for Death Care
Often cited by advocates of home funerals and green burials, Virginia allows families to:
● Directly manage funerals
● Handle transport and permits
● File required legal documents
This makes Virginia a leader in family-led funeral rights.
💡 Why Do These Differences Matter?
These state-by-state variations can affect:
● Cost: States with stricter licensing and inspections may have higher prices due to compliance costs.
● Access: In permissive states, families have more freedom — but also more responsibility.
● Consumer protection: Tighter regulations may protect families from unethical practices but limit options for DIY or low-cost arrangements.
For example:
● In California or Illinois, you're more likely to get standardized, professionally managed services — but at a higher cost.
● In Virginia, families can design deeply personal funerals at a lower cost — but must be well-informed and hands-on.
🧭 Conclusion: Know Your Rights and State Laws
Funeral regulations in the U.S. are far from uniform. While the federal government provides basic protections through the FTC Funeral Rule, it’s really the states that shape how families experience the death care process.
Some states:
● Emphasize professional oversight and consumer protection
● Others prioritize autonomy, access, and affordability
As recent reforms in Colorado show, public pressure and media exposure can drive major legal changes — fast.
Whether you're a family planning a funeral, a provider navigating compliance, or an advocate working on policy reform, understanding your state’s specific laws is critical.
📚 Further Reading & Resources:
● FTC Funeral Rule: Federal Trade Commission Overview
● National Home Funeral Alliance: www.homefuneralalliance.org
● Funeral Consumers Alliance: www.funerals.org