Where must all preneed funds be held?

Preneed funds, which are monies paid in advance for funeral services to be rendered in the future, must be held in a trust fund to ensure the financial protection and proper management of these funds. This requirement is in place to safeguard consumer interests and ensure that the funds are used specifically for the intended purposes related to funeral services.

By placing preneed funds in a trust, it allows for transparency, accountability, and proper investment of the funds, all while ensuring that the money is available when the time for service arises. Trust funds are regulated and provide a level of security that options like checking accounts, government accounts, or savings bonds do not inherently offer in the context of managing preneed funeral funds. Thus, the trust fund structure is designed to ensure that the funds are preserved for their intended future use, aligning with consumer protection laws and industry regulations.