About Avalon's Trusts
Avalon currently operates four trusts each of which have been established by a written instrument and are governed by trust laws. As an FCA regulated entity, Avalon must also comply with the rules around trusts that are detailed in the Financial Services and Markets Act 2000, which sets out the legislation that applies to funeral plans.
Your plan price incorporates amounts to cover our reasonable expenses which includes the administrative costs of running the business throughout the life of the plan. As a plan provider we retain this amount when you pay for the plan and the balance is placed and safeguarded in a UK Trust fund. These amounts are certified by an independent actuary to ensure we have sufficient funds retained on trust to provide the funeral services at the time of need. The administrative costs are not a fee or a charge to you and any amount you pay for your plan is refundable, subject to the cancelation terms of your plan.
When you purchase an Avalon funeral plan, you lock in this price with us. It’s important to note that we don’t typically expect you to use the plan immediately. However, if you do require a funeral right away, the cost of this plan is comparable to the current average price of a funeral if you were to arrange it directly at the time of need.
At the time of sale, Avalon will allocate your plan to a specific Funeral Director(s) and have negotiated a wholesale price for the costs of the provision of your funeral. These costs to Avalon can vary, for example, by region and plan type. Unlike the plan price you pay which is fixed, the at need price today is likely to rise with inflation each year until you need a funeral. These wholesale costs to Avalon are also uplifted for inflation each year.
The trust uses its scale to efficiently invest through recognised investment funds. The funds within the trust are invested to ensure that rising costs (inflation) associated with providing the services under the funeral contract can be met when they fall due on enactment of the plan at the time of need. The trusts are managed by independent trustees and the investments managed by third party investment specialists under the direction of the trustees.
In accordance with FCA regulations and in order to protect against the volatility of investments the trusts seek to maintain a surplus over and above the costs of delivering the services. These costs are updated for inflation and assessed annually by an independent actuary. If the value of the assets falls below the costs as determined by the actuary, Avalon is required to ensure that the fund is topped up to ensure that there are at least sufficient assets to meet the future costs.
Subject to professional advice and guidelines and the Trust being over 10% in surplus, Avalon may receive additional amounts from the Trust. These payments are signed off by the trustees who ensure that the Trust retains sufficient funds to meet its obligations to all our plan holders.
The table below shows the current price of the plans and an indication of our average wholesale prices.
| Date | Plan name | Current retail price | Average wholesale price* |
| 01.08.24 | Standard Funeral Plan (UK) | £3,895 | £2,600 + annual uplift for inflation |
| 01.08.24 | Plus Funeral Plan (UK) | £4,245 | £2,600 + annual uplift for inflation |
| 01.08.24 | Premium Funeral Plan (UK) | £4,495 | £2,600 + annual uplift for inflation |
| 01.08.24 | Direct to Cremation Plan (GB) | £1,675 | £850 + annual uplift for inflation |
| 01.08.24 | Celebration Funeral Plan (GB) | £2,945 | £1,650 + annual uplift for inflation |
| 01.08.24 | Direct to Cremation Plan (Spain) | €2,595 | €1,450 + annual uplift for inflation |
| 01.08.24 | Standard Funeral Plan (Spain) | €3,995 | €2,750 + annual uplift for inflation |
| 01.08.24 | Standard Funeral Plan (Portugal) | €3,995 | €2,750 + annual uplift for inflation |
| 01.08.24 | Standard Funeral Plan (Cyprus) | €4,250 | €2,750 + annual uplift for inflation |
| 01.08.24 | Plus Funeral Plan (Spain) | €4,595 | €2,750 + annual uplift for inflation |
| 01.08.24 | Plus Funeral Plan (Portugal) | €4,595 | €2,750 + annual uplift for inflation |
| 01.08.24 | Repatriation Cremation Funeral Plan (Spain) | €8,950 | €5,750 + annual uplift for inflation |
| 01.08.24 | Repatriation Cremation Funeral Plan (Portugal) | €8,950 | €5,750 + annual uplift for inflation |
| 01.08.24 | Repatriation Cremation Funeral Plan (Cyprus) | €7,450 | €5,750 + annual uplift for inflation |
| 01.08.24 | Repatriation Burial Funeral Plan (Spain) | €8,950 | €5,750 + annual uplift for inflation |
| 01.08.24 | Repatriation Burial Funeral Plan (Cyprus) | €7,450 | €5,750 + annual uplift for inflation |
* The average wholesale cost also includes a £1,200 disbursement allowance where relevant to the funeral plan type. This wholesale cost reflects the current cost at point of sale and will be uplifted annually for inflation to allow for future cost increases of the funeral directors and related services up until the time the plan is enacted.
Financial Services Compensation Scheme
In the unlikely event of failure of Avalon there will be a reasonable likelihood that your funeral plan contract will be transferred to and continue to be carried out by another regulated funeral plan provider but that could potentially generate extra costs for you.
In the event that the relevant funeral plan contract will not continue to be carried out by us or another firm then you will receive a payment corresponding to your balance, but this may not be the full amount you’ve paid in.
Avalon are a member of the Financial Services Compensation Scheme (FSCS). Should Avalon be unable to meet its liabilities, you may be entitled to compensation from the compensation scheme.
Further information about the scheme is available on the FSCS website: www.fscs.org.uk
Annual Trust Solvency Assessment Reports (as at 30 June 2024)
The Financial Conduct Authority (FCA) require all plan providers that hold plan funds in a trust to publish an annual Solvency Assessment Report (SAR). The following SARs have been produced by an independent actuary in accordance with the Financial Services and Markets (Regulated Activities) Order 2001 and they cover the determination, calculation and verification of the assets and liabilities of the trust as at 30 June 2024.
Publication Date: October 2024
Next Update: October 2025
Avalon Funeral Trust No. 1 – for UK plans purchased on or prior to 28th November 2012- Avalon Funeral Trust No. 2 – for European plans purchased on or prior to 28th November 2012
- Avalon Funeral Trust No. 3 – for UK plans purchased on or after 29th November 2012
- Avalon Funeral Trust No. 4 – for European plans purchased on or after 29th November 2012