Upon fulfillment of a contract, funds in a preneed funeral trust are paid to whom?

The correct answer is that, upon fulfillment of a contract, funds in a preneed funeral trust are paid to the contract beneficiary. This reflects the purpose of preneed funeral trusts, which are designed to ensure that the funds allocated for a person's funeral expenses are preserved and paid out for that specific purpose when the time comes.

The beneficiary is often the individual who has planned and prearranged their funeral services. By directing the funds to the beneficiary, the trust ensures that the financial resources set aside for their funeral are utilized according to their wishes, providing a level of assurance and peace of mind about future funeral costs.

In the context of funeral trusts, while a funeral establishment may be responsible for providing the services, they do not directly receive the funds unless the trust has been fulfilled and the services rendered. The state board does not receive funds from the trust; their role is primarily regulatory, ensuring compliance with state laws and standards. The trustee manages the funds and oversees the trust but ultimately disburses the funds to the beneficiary to fulfill the contract. Thus, the focus remains on the contract beneficiary receiving what they have planned for.