How many trustees must be appointed to assure oversight of preneed funds if not held in a bank?

In West Virginia, the regulations regarding preneed funds indicate that a minimum of three trustees is required for the oversight of those funds when they are not held in a bank. This requirement serves as a safeguard to ensure transparency and accountability in the management of preneed funds, which are prepaid funeral arrangements made by consumers.

By appointing three trustees, the system mitigates the risk of fraud or mismanagement, as the decision-making is shared among multiple individuals who can provide checks and balances on each other's actions. Having a singular trustee could lead to a lack of oversight and potential misappropriation of funds, while two might still leave room for compromised decision-making if there is a disagreement or collusion. Therefore, the choice of three trustees emphasizes the importance of robust governance in protecting consumers' interests regarding their preneed funds.