South Carolina Funeral Law Practice Exam

Who has the option to select an irrevocable preneed contract?

1. The provider

2. The purchaser

3. The trustee

4. The beneficiary

The correct answer is: The purchaser

The purchaser has the option to select an irrevocable preneed contract because they are the individual who initiates the contract and makes decisions regarding the payment and the terms of the funeral services to be provided at a later date. An irrevocable preneed contract means that the terms cannot be altered or canceled once established, providing security and assurance for the purchaser that their desires will be fulfilled without further financial burden on their family at the time of need. The provider is responsible for fulfilling the terms of the contract but does not have the authority to select the type of preneed contract. The trustee usually manages the funds associated with the preneed contract but does not initiate or select the contract terms. Finally, the beneficiary is the individual who will receive the services outlined in the contract but has no say in its selection or terms, as this decision has already been made by the purchaser. Thus, the purchaser is indeed the correct answer in this scenario.