How much of the endowment care fund may be used for compensation of trustees?

The correct answer is that the endowment care fund may allocate up to 5% for the compensation of trustees. This is established to ensure that the funds aimed at providing care and maintenance for cemetery properties are preserved for their intended purpose while allowing for reasonable compensation for trustees who manage these funds.

Trustees play an important role in overseeing the proper investment and allocation of the endowment care fund, which is intended to guarantee the long-term sustainability of cemetery operations. By limiting the compensation to 5%, California law aims to strike a balance between appropriately compensating trustees for their responsibilities and ensuring that the majority of the fund remains dedicated to its primary purpose of maintaining cemetery grounds and ensuring the care of the resting places of the deceased.

The other options suggest higher percentages or none at all, which do not align with the legislative provisions and regulatory oversight regarding the use of endowment care funds. The limitation is a reflection of the priority placed on the fund’s preservation and its intended purpose, thus ensuring that the funds serve future generations.