North Carolina Funeral Law Practice Exam

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Trust accounts for preneed funeral licensees must be carried in the name of the licensee as what?

Owner
Trustee
Beneficiary
Administrator

The correct answer is: Trustee

Trust accounts for preneed funeral licensees must be carried in the name of the licensee as the trustee because the role of a trustee involves managing the funds on behalf of another party—in this case, clients who have made preneed arrangements. This designation ensures that the licensee has the legal authority to manage the trust account appropriately while adhering to the fiduciary responsibilities that come with such a position. As a trustee, the licensee is obligated to act in the best interests of the beneficiaries (the individuals who have prearranged their funeral services), ensuring the funds are protected and used solely for the intended purpose. This structure is vital for maintaining trust and accountability in the management of funds related to preneed funeral services.