What fee can the seller request after 5% of a preneed contract amount is in trust?

In the context of preneed contracts and Missouri Funeral Directors Law, once 5% of the preneed contract amount has been placed in trust, the seller is entitled to request a 5% origination fee. This fee is a compensation structure that recognizes the work and resources that went into creating the contract. The origination fee is designed to cover initial administrative costs related to establishing the preneed arrangement, thereby allowing the seller to recover a portion of their investment in the service provided to the clients.

The preneed contract is a legally binding agreement that outlines the services to be provided at a future date, typically at the time of a consumer's need for funeral services. By allowing the seller to access this small percentage as an origination fee only after the 5% threshold is met, the law ensures that consumer funds are protected while still allowing funeral directors to maintain a viable business model when servicing preneed agreements.