What are "funeral home trusts"?

Funeral home trusts refer to financial accounts specifically established to fund pre-need funeral arrangements. When individuals plan their funerals in advance, they often wish to ensure that the costs are covered without financial burden on their families at the time of death. By placing funds into a funeral home trust, the amount is set aside and can be used to cover the agreed-upon services and merchandise when the time comes. This arrangement not only provides peace of mind to the individual making the plans but also locks in current prices for services that may increase in cost over time.

The other options do not accurately describe the function of funeral home trusts. Storing personal belongings of the deceased pertains to estate management rather than pre-need planning. The management of estate distribution relates to the overall handling of assets after death, rather than a specific agreement made in advance for funeral services. Lastly, facilities for hosting viewings are part of the services provided by funeral homes, but they do not pertain to the financial planning aspect provided by funeral home trusts.