What is an account established for the benefit of another individual, often to pay for funeral expenses?

The correct choice is a trust account, which is specifically designed to hold and manage assets on behalf of another person or entity for a defined purpose. In the context of funeral expenses, a trust account can be established to ensure that funds are set aside and managed appropriately to cover these costs when needed.

Trust accounts are governed by specific legal frameworks that dictate how the funds can be used, ensuring that they are reserved for the designated beneficiary—typically someone responsible for dealing with funeral arrangements. This type of account provides a level of security and assurance that the funds will be available when the time comes, preventing financial burdens from falling on the family during a difficult time.

Other types of accounts, such as a funeral fund, may also serve similar purposes, but they may not have the same legal structure or protections associated with trust accounts. A beneficiary account focuses more on the distribution of assets after someone's death, while an escrow account is used for holding funds in trust until certain conditions are met, which does not typically align with the specific purpose of covering funeral expenses directly.