What is a requirement of prearrangement funeral service trust agreements?

The requirement for prearrangement funeral service trust agreements to have a minimum of two trustees is rooted in the goal of safeguarding the interests of the parties involved. Appointing at least two trustees promotes accountability and ensures that financial management responsibilities are shared, which can prevent misappropriation of funds and enhance transparency in the administration of the trust.

Having multiple trustees means that decisions regarding the trust funds must be made collaboratively, reducing the risk of any single individual making unilateral decisions that could adversely impact the trustor or beneficiaries. This dual trustee structure is a standard practice designed to protect clients and enhance the trust's integrity within the regulation framework.

By contrast, having only one trustee could lead to potential conflicts of interest or unethical behavior, as there would be no checks and balances in place. Verbal agreements are typically not sufficient for legal and financial arrangements of this nature, as they lack the enforceability and documentation that written contracts provide. The ability to remove trustees without notice would compromise the trust's security and stability, which is not permissible under these regulations.