New Jersey Jurisprudence Practice Exam

Which of the following conditions must NOT be present for a prepaid funeral agreement to be established?

1. The intended recipient is ineligible for public assistance.

2. The intended recipient intends to apply for assistance.

3. The intended recipient has a substantial income.

4. The intended recipient is a non-resident.

The correct answer is: The intended recipient is ineligible for public assistance.

For a prepaid funeral agreement to be established, there are specific conditions concerning the eligibility of the intended recipient for public assistance that must be considered. The correct choice highlights a condition that is not necessary for the agreement. Specifically, it is important to note that the eligibility status of the intended recipient concerning public assistance does not have to be a determining factor in the establishment of a prepaid funeral agreement. This means a person can be eligible for public assistance or not without affecting their ability to enter into such an agreement. On the other hand, the other choices point to various considerations that relate directly to the financial and legal viability of establishing a prepaid funeral agreement. For instance, the intended recipient's intent to apply for assistance, their income level, or their residency status could be relevant when determining how such agreements are managed, particularly regarding asset protection and eligibility for future assistance. Thus, these factors may have implications for the recipients' financial situations and future public assistance eligibility, which are important for understanding the context of prepaid funeral agreements.