South Carolina Funeral Law Practice Exam

What can the provider withdraw from the trust to cover administrative costs?

1. 5 percent of annual earnings

2. 10 percent of annual earnings

3. 15 percent of annual earnings

4. No funds can be withdrawn

The correct answer is: 10 percent of annual earnings

In South Carolina, the law allows funeral service providers to withdraw a certain percentage of the annual earnings from a trust to cover administrative costs associated with managing that trust. The maximum percentage that a provider can withdraw is set at 10 percent of the annual earnings. This regulation is in place to ensure that providers can maintain their operations and meet their obligations while safeguarding the remaining funds for the intended purpose of providing funeral services. This provision helps ensure that while the providers can receive necessary funds to cover costs, it also maintains a balance by limiting how much can be drawn from the trust. Thus, the correct response regarding the allowable percentage for withdrawal aligns with the established legal framework, ensuring compliance with South Carolina funeral law and protecting consumer interests.