Michigan Mortuary Science Practice Exam 2026 - Free Mortuary Science Practice Questions and Study Guide

The correct percentage of cemetery funds that must be held in escrow is 80%. This requirement serves to ensure that a significant portion of the funds intended for cemetery maintenance and care is preserved securely. Holding these funds in escrow allows for accountability and guarantees that they will be available for their designated purpose, such as the upkeep of the cemetery and related services over time.

The regulation often reflects the necessity for cemeteries to maintain financial sustainability for ongoing operations, especially as they relate to perpetual care trusts. This is vital to protect the interests of both the cemetery and the families of the deceased, ensuring that the funds are not inappropriately used or depleted over time.

In contrast, other percentages, such as 100%, 60%, and 40%, do not align with the established legal requirements for maintaining sufficient escrow funds. A requirement of 100% would not allow for operational flexibility, while 60% or 40% would be insufficient to ensure long-term financial security and operational viability for the cemetery’s maintenance obligations.