Which of the following is NOT a requirement for a funeral trust?

The selection of "must have multiple settlors" as the correct answer indicates a misunderstanding of how funeral trusts function. A funeral trust is fundamentally designed to pre-fund funeral expenses in a way that protects the funds until needed. One of the standard requirements is that these trusts should typically be irrevocable, which means once the trust is established, the terms cannot be changed easily, ensuring that the funds are specifically allocated for the intended funeral expenses.

Naming a financial institution is also a requirement, as it serves as the trustee managing the funds. This ensures that the trust's assets are handled appropriately and are safeguarded until distribution at the time of need. Furthermore, while a licensed embalmer can be named, the requirement does not typically restrict the trust to a sole beneficiary outside of acceptable funeral service providers.

Thus, stating that multiple settlors is a requirement is inaccurate. Funeral trusts can be established by a single individual, making this option not a true requirement of funeral trusts in Indiana. Understanding these elements helps clarify the proper establishment and function of funeral trusts while ensuring compliance with state regulations and the intended use of the funds.