What percentage may be charged as an additional fee to the seller after payment is made into trust?

In the context of Kentucky law regarding trust payments in funeral service transactions, it is permissible to charge an additional fee to the seller after the payment has been deposited into trust. According to Kentucky regulations, this fee is capped at 10% of the amount contributed to the trust.

This limit is established to ensure that the additional charge remains reasonable and does not excessively burden the consumer who has already committed funds for future services. The rationale behind this percentage is to provide a reasonable administrative allowance for the seller while still adhering to the intentions of the trust, which is to secure and prioritize the funds for the designated funeral services.

Other percentages listed are higher than the allowable threshold, which would not align with regulatory guidance and could lead to non-compliance with the law governing funeral trusts in Kentucky. Understanding this regulation is crucial for funeral directors and embalmers as it affects how they manage trust accounts and the fees they can legally impose.