What happens if a funeral establishment goes out of business regarding prearrangement funeral service contracts?

When a funeral establishment goes out of business, the handling of prearrangement funeral service contracts is governed by specific regulations to protect consumers. In Washington, the law stipulates that if a funeral establishment ceases operations, the prearrangement contracts do not simply become void. Instead, they may be transferred to another funeral establishment, ensuring that consumers still have access to the services they were promised.

Additionally, the establishment is required to refund all moneys deposited in the trust if those contracts cannot be honored. This dual protection—allowing for both the potential transfer of contracts and the right to a refund—ensures that individuals who prepay for funeral services are not left without recourse in the event of the establishment's closure. Therefore, both the transfer of contracts to another establishment and the requirement for refunds are valid responses if a funeral establishment goes out of business, making the choice that includes both elements accurate.