Which term best describes the person who pays for the preneed arrangements?

Which term best describes the person who pays for the preneed arrangements?

• A. The person for whom the funeral will be provided
• B. The trustor
• C. The beneficiary
• D. The funeral director

Answer: (B)

In preneed arrangements, the funds are placed into a trust created specifically for that purpose. The person who creates and funds this trust is the trustor. The trustor is the one who provides the money or assets to guarantee the services will be paid for when the time comes. The person for whom the funeral will be provided is the beneficiary—someone who benefits from the trust’s assets or the planned services—not the payer. The funeral director is the service provider, not the payer. So the term that best describes who pays for the preneed arrangements is the trustor.

In preneed arrangements, the funds are placed into a trust created specifically for that purpose. The person who creates and funds this trust is the trustor. The trustor is the one who provides the money or assets to guarantee the services will be paid for when the time comes. The person for whom the funeral will be provided is the beneficiary—someone who benefits from the trust’s assets or the planned services—not the payer. The funeral director is the service provider, not the payer. So the term that best describes who pays for the preneed arrangements is the trustor.