A legal instrument which authorizes payment of insurance funds for funeral expenses to a funeral home is?

The correct choice, which refers to a legal instrument that permits the payment of insurance funds for funeral expenses directly to a funeral home, is an assignment of proceeds. This document is typically executed by the policyholder, allowing the funeral home to receive the benefits from a life insurance policy at the time of death.

By assigning the proceeds, the funeral home secures payment for the services rendered, thus ensuring that the financial burden of funeral expenses is alleviated for the family. This assignment is crucial particularly when the family may wish to utilize existing life insurance benefits to cover funeral costs without needing to deal with the estate or other financial arrangements in a time of grief.

In contrast, a will is a document that dictates how a person's affairs and property are to be handled after their death but does not directly authorize payments to a funeral home. A power of attorney is used to grant someone the authority to act on behalf of another in financial or legal matters but does not pertain specifically to the funeral expenses or insurance proceeds. A trust document involves the management and distribution of assets held within a trust, which also does not directly equate to the allocation of insurance funds for funeral services.