PRENEED questions Latest Update 2025-2026 50
Questions and 100% Verified Correct Answers
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"Can someone to whom I owe money make a claim against the money, personal
property or real estate that I have used to pay for this contract?" - CORRECT ANSWER:
No. This money or property cannot be used to settle a debt, bankruptcy, or resolve a
claim. These funds cannot be garnished.
"Can the money or property be taxed?" - CORRECT ANSWER: No. Currently, interest
earned on the money you deposit into a trust or savings account or the value of the
property can be taxed, but not the original amount you invested.
"Do certain cemeteries and crematoriums have special requirements?" - CORRECT
ANSWER: Particular cemeteries and crematoriums may have policies requiring that
certain goods and services be purchased. If you decide not to purchase goods and
services required by a particular cemetery or crematorium, you have the right to select
another location.
"Do I have to buy a vault or a container to surround the casket in the grave?" -
CORRECT ANSWER: In most areas of the country, state, and local laws do not require
that you buy these items. However, many cemeteries ask that you have such items to
support the earth above the ground.
"If I choose goods and services that might not be available at the time of my death, what
is the provider required to do?" - CORRECT ANSWER: The FH is required to furnish
supplies of equal value and quality. Your NOK will have the right to choose substituting
supplies. However, if the substitution is more expensive, the NOK will be responsible for
paying the difference.
, "If I may die in a different area than the FH I paid for my preneed at, will the FH have to
deliver my merchandise to the city where I died at?" - CORRECT ANSWER: This is up
to the funeral home to decide. Everything must be in writing, whether they agree or
disagree. However, the preneed contract arrangements and funding is considered
portable. This means they are available for transfer from one location to another. It is
unusual for actual goods and merchandise to be transferred.
"If my money goes into a trust account, what information will I receive about that
account?" - CORRECT ANSWER: If you want your money to go into a trust account, the
trust agreement must give you information about the amount to be deposited into that
trust account, the name of the trustee, information about what happens to the interest
your trust account will earn, and information about your responsibility to file and pay
taxes on that interest.
"If the prices of the goods and services are affected by inflation between now and my
death, will the funding I choose be adjusted accordingly?" - CORRECT ANSWER:
There is a possibility that the funding may fail to keep up with inflation. This could mean
that the funding you choose could have insufficient value to cover all expenses.
"If there are any legal or other requirements that mandate that you must buy any items
which you did not specifically ask for, the contract seller will explain the reason for these
charges in _____________" - CORRECT ANSWER: Writing
"Is a casket required?" - CORRECT ANSWER: This is not required for direct cremation.
If you want to arrange a direct cremation, you may use an unfinished wood box or
alternative container made of heavy cardboard or composition materials.
"Is embalming always required" - CORRECT ANSWER: Except in certain special cases,
embalming is not required by law. Embalming may be necessary, however, if you select
certain funeral arrangements such as viewing or visitation with an open casket. You do
not have to pay for embalming you did not approve if you select arrangements such as
a direct cremation or immediate burial.