Which document must a funeral director keep related to each prepaid funeral sale?

In the context of prepaid funeral sales, funeral directors are required to maintain comprehensive records to ensure compliance with regulations and to protect the interests of the consumers. The correct answer involves keeping both the preneed contract and a record of all payments made.

The preneed contract outlines the details of the funeral services agreed upon, including the specific services, merchandise, and payment terms. This document is vital because it keeps clear documentation of what has been promised to the consumer, thereby ensuring that the funeral services will be honored as intended.

In addition to the preneed contract, keeping a record of all payments is essential for tracking the financial aspects of the transaction. This includes documenting any deposits made, installment payments, or final payments settled. Such records help in maintaining transparency and accountability and are crucial for resolving any potential disputes regarding money or services rendered.

Together, these documents provide a complete picture of the prepaid agreement, which is important for legal and ethical compliance within the funeral service industry. They also serve as essential documentation for the funeral home and the consumer should there be any inquiries or issues later on regarding the arrangements.