An irrevocable funded preneed funeral contract stipulates that the funds cannot be refunded. Which statement best describes this contract?

• A. Funds cannot be refunded
• B. Funds can be refunded
• C. Funds may be refunded under some circumstances
• D. Funds are refunded at the funeral home discretion

Answer: (A)

Irrevocable funded preneed contracts set up the funding in a way that the money, once paid into the trust or funding vehicle, cannot be withdrawn or refunded to the purchaser. The word “irrevocable” means you relinquish the right to reclaim or change the funds, and they are dedicated to the specific funeral arrangement. Because of that, the correct description is that funds cannot be refunded. The other statements would imply some ability to get money back or discretionary refunds, which does not align with the nonrefundable nature of an irrevocable contract.