What percentage of a prearrangement contract can a funeral home retain in Washington State?

In Washington State, funeral homes are permitted to retain up to 10% of the value of a prearrangement contract. This regulation ensures that while the funeral homes can receive compensation for their services, they also have a responsibility to safeguard a significant portion of the funds for the intended use of the contract. The 10% cap is designed to prevent financial exploitation of clients who are seeking to plan for their final arrangements, as it ensures that the majority of the prearrangement funds remain intact for the services specified.

Understanding this percentage is crucial for funeral directors as they navigate the ethical and legal obligations within the state. It reflects the balance between a funeral director's need to operate a sustainable business and the obligation to act in the best interest of clients making long-term arrangements.