Can a funeral home keep more than 10% of a prearrangement contract in Washington State?

In Washington State, the regulations governing prearrangement contracts specify that a funeral home is limited to keeping a maximum of 10% of the total amount of the contract at any given time. This law is in place to protect consumers and ensure that a significant portion of their funds is preserved for its intended purpose—covering the costs associated with funeral services.

The intent behind this regulation is to maintain transparency and integrity in financial dealings involving prearranged funeral services, ensuring that clients’ funds are utilized appropriately and not subject to excessive fees or administrative costs. Therefore, funeral homes are not permitted to retain more than this predetermined percentage, reinforcing ethical practices in the industry and safeguarding consumer interests.

Understanding this regulation is essential for both funeral directors and consumers to ensure compliance and trust in the services provided in these sensitive arrangements.