Doesn't bother me what happens to my remains in the far distant future tbh. Pretty sure I won't be around to complain!
Anyway, to clarify the law - as it stands right now, all human remains excavated must be reburied, normally within a two-year period from the date of being removed from the ground, unless they are significant enough to retain in stores or museums, in which case a licence to curate them may be applied for.
First of all though you have to get to the stage where you can remove them from the ground. If you find them unexpectedly on a non-archaeological excavation (i.e. construction), all work must cease and you call the police.
If you find them unexpectedly within an archaeological excavation (i.e. you'd targeted a house but found a grave), then you need to justify to the MoJ why removing them from the ground is necessary and will contribute to understanding, but mostly they will not let you remove them.
If you are targeting a known or suspected burial ground in an archaeological excavation, you usually need permission from the MoJ to remove anything. There are quite a number of hoops to jump through as you would imagine.
It's not quite as simple as archaeologists going in and plundering graves, then using the skulls as paperweights, or something ridiculous like that. If anyone is interested in reading more about the legislation, then these are some good links to try which outline the way things stand at the moment:
www.bajr.org/BAJRGuides/13.%20A%20Basic%20Overview%20of%20the%20Recovery%20of%20Human%20Remains%20from%20Sites%20Under%20Development/13HumanRemainsDevelopment.pdf
www.pia-journal.co.uk/article/view/pia.369/430
When I worked in museums, we had several boxes of human remains in the store. They were kept seperately in their own room - partly out of respect and partly because some visitors could be iffy about skeletons, and frankly I don't think the skeletons should have to put up with that kind of hysteria 
- and were treated with the utmost respect. They were all Saxon or older in date, and from a site which had been built over.
I worked on the skeletons that went into the new Stonehenge displays and they were always treated very well. I remember they all had fantastic teeth! The information that the osteos had gained about migration and diet from the isotope analyses were amazing and really eye opening. I'm an Iron Age specialist so they were a bit older than I'm used to (i.e. Neolithic) but still equally fascinating nonetheless. There is an incredible amount of information to be gained from human remains. Quite apart from the simple fact that we have little (no) idea what sort of ceremony would accompany the reburial of prehistoric remains.
This is the chap I worked with :) : www.newscientist.com/article/dn24811-stonehenge-man-not-just-a-pretty-face.html#.VQ2ZMOFSSjE He really does have amazing teeth! Arguably better than mine 
Perhaps I'm de-sensitised to it as I've handled so many skeletons over the years, but I still have the highest respect for them. When I was a student I once went into a work room to do some cataloguing and an IA skeleton from Danebury had been laid out at the far end of the massive tables. I hadn't seen him so I dumped my tea and laptop on the other end of the table before putting the lights on. I apologised deeply to him when I realised 
and then found a different table to work on. I used to name them as I thought a name was better than an accession number too...