North Carolina Funeral Law Practice Exam

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What is required before a financial institution can release funds from a preneed funeral contract?

A court order
A written request from the purchaser
A signature from the funeral director
An affidavit from a witness

The correct answer is: A written request from the purchaser

Before a financial institution can release funds from a preneed funeral contract, a written request from the purchaser is required. This reflects the principle that the purchaser retains control and rights over the funds associated with their preneed arrangement. A written request serves as proof that the purchaser has authorized the release of funds, ensuring that the financial institution acts in accordance with the wishes of the individual who made the contract. Given that preneed contracts involve financial commitments that are often significant, it is essential for institutions to have clear documentation to prevent unauthorized withdrawals or disputes. This requirement prioritizes the interests of the purchaser and upholds the validity of the contract.