What must happen to at least ninety percent of the cash purchase price of each prearrangement funeral service contract?

In Washington State, the regulation concerning prearrangement funeral service contracts stipulates that at least ninety percent of the cash purchase price must be placed in a trust. This requirement is designed to ensure that the funds designated for the funeral services are safeguarded and will be available when the time comes for those services to be rendered.

By placing the funds in a trust, the consumer is provided with a layer of security and assurance that their prearranged services will be honored and funded appropriately. Trust accounts are generally regulated and protected, meaning the money is kept separate from the operating funds of the funeral establishment. This helps prevent any potential mismanagement of funds, thereby protecting the rights of consumers who have made prearrangements for their funerals.

This regulation aims to promote transparency and trust within the funeral service industry, allowing consumers to have confidence that their financial contributions towards their future services are secured and will be allocated appropriately upon their passing.