California Funeral Director License Practice Exam

Which information must be included in a preneed trust agreement?

1. Name and address of trustor, beneficiary, trustee(s), funeral establishment, serial number, disclosures

2. Personal identification details of all relatives

3. The cost of services only

4. Only the signatures of the involved parties

The correct answer is: Name and address of trustor, beneficiary, trustee(s), funeral establishment, serial number, disclosures

The inclusion of the name and address of the trustor, beneficiary, trustee(s), funeral establishment, serial number, and disclosures in a preneed trust agreement is essential to ensure that the agreement is clear, legally binding, and adequately serves its purpose. The trustor is the individual establishing the trust, and their details are crucial for establishing their identity and responsibility. The beneficiary is the person who will receive the benefits of the trust, and clarity regarding their identity helps prevent disputes later on. Including the trustee(s), who manage the trust, is necessary for accountability and operational transparency, as many trusts involve a third party responsible for the fund's management. The funeral establishment's information identifies which provider is associated with the preneed services, ensuring that the agreement aligns with the specific services being pre-funded. The serial number serves as a unique identifier for tracking purposes, which is important for record-keeping and audits. Disclosures are required to inform the parties involved about the terms of the trust, rights, and responsibilities, which contributes to making informed decisions and protecting the interests of all parties. The other choices do not adequately address the critical elements necessary for a preneed trust agreement, as they focus on irrelevant or insufficient details that do not ensure the