CHAPTER 10. FUNERAL TRUST FUNDS
IC 30-2-10
Chapter 10. Funeral Trust Funds
IC 30-2-10-1
Establishment
Sec. 1. An individual may establish one (1) funeral trust under thischapter, in lieu of any other arrangements for advance payment forfuneral and burial expense.
As added by Acts 1982, P.L.179, SEC.2.
IC 30-2-10-2
Payments required to be made to accounts in certain banks, trustcompanies, and other institutions
Sec. 2. It is unlawful to enter into any agreement or contract fora purpose described in section 1 of this chapter unless the agreementor contract requires that all payments be made by the settlor to anaccount in a:
(1) bank;
(2) trust company;
(3) savings association; or
(4) credit union;
whose principal office is in Indiana.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.79-1998,SEC.93.
IC 30-2-10-3
Validity of trust; requirements
Sec. 3. A funeral trust established under this chapter is valid onlyif it:
(1) is irrevocable;
(2) has only one (1) settlor;
(3) names as trustee an Indiana institution qualified undersection 2 of this chapter, and requires that all funds bedeposited in that institution;
(4) names a funeral home, licensed under IC 25-15, as solebeneficiary; and
(5) is accompanied by a written contract between settlor andbeneficiary as provided in section 5 of this chapter.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.246-1985,SEC.23.
IC 30-2-10-4
Trustee; expenses and compensation
Sec. 4. The trustee, in the administration of funds accepted underthis chapter, may be reimbursed and receive from the funds itsreasonable expenses in the custody and administration of the funds,and is entitled to the usual and reasonable compensation for itsservices as trustee. The expenses and compensation shall be paid inaccordance with the rules of the department of financial institutions.
As added by Acts 1982, P.L.179, SEC.2.
IC 30-2-10-5
Contracts; required provisions
Sec. 5. The contract under which funds are accepted under thischapter must be in writing and contain, as a minimum, the followingprovisions:
(1) Details of the professional services, facilities, equipment,and a description of merchandise to be provided by thebeneficiary. If the merchandise or equipment includes a vault(as defined in IC 23-14-33-33) that:
(A) will be used to encase the remains of a deceasedindividual; and
(B) is not airtight and watertight;
the details must include a written statement indicating that thevault is not airtight and watertight.
(2) A provision that the beneficiary may provide merchandiseof equal or better quality if the merchandise contracted for is nolonger available at the time the merchandise is to be provided.
(3) The place of the funeral and the place of the burial or otherfinal disposition to be made of the decedent.
(4) An acknowledgment by the settlor that the settlorunderstands the irrevocable nature of the trust.
(5) A provision for reasonable adjustment of the services, orcost of services, if the body is transported a distance greaterthan twenty-five (25) miles to the place of funeral or the placeof burial or final disposition and transportation of a distance inexcess of twenty-five (25) miles was not contemplated at thetime of the execution of the contract.
(6) A provision for full payment of the contract amount by thesettlor, a description of the manner in which the funds are to bedeposited, and a statement that the interest will accrue to thetrust account and a further statement that the principal andinterest earned shall inure to the beneficiary to cover all thecosts incident to the beneficiary's performance of the contract,any excess to be refunded to the estate of the settlor or to theheirs at law.
(7) The settlor's name, address, and social security number.
(8) The date that the funeral trust is executed by the settlor.
(9) The trustee's name and address.
(10) The beneficiary's license number issued by the state boardof funeral service.
(11) A provision that except under the circumstances describedin subsection (12), only the settlor may change the beneficiary,that the settlor may make the change at any time, and that thechange is not effective until written notification is given to theoriginal beneficiary.
(12) A provision that allows the state board of funeral serviceto change the beneficiary by naming a funeral home as newbeneficiary if the original beneficiary becomes deceased,dissolved, terminated, or otherwise loses beneficiary status asa licensee of the state board, and the settlor or the settlor's
guardian or personal representative fails to select a qualifiedbeneficiary.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.246-1985,SEC.24; P.L.61-2008, SEC.5.
IC 30-2-10-6
Change of beneficiary; procedure
Sec. 6. If the settlor changes the beneficiary, he must:
(1) select a new beneficiary licensed under IC 25-15, or afuneral home or a funeral director licensed in another state; and
(2) give written notification to the funeral home originallynamed as beneficiary.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.246-1985,SEC.25.
IC 30-2-10-7
Delivery of copy of contract to settlor
Sec. 7. (a) The settlor shall be furnished an executed copy of thecontract.
(b) If a contract has been approved and signed by both parties anda copy of the contract has been delivered to the settlor, no furthernotification to the settlor related to the contract is required.
As added by Acts 1982, P.L.179, SEC.2.
IC 30-2-10-8
Management of funds by financial institutions; annual reportsfrom beneficiaries
Sec. 8. (a) Indiana financial institutions in which trust funds havebeen deposited in accordance with this chapter may place the fundsin a common or commingled trust fund under a single trustinstrument. The trustee shall maintain a separate accounting recordfor each trust fund.
(b) All interest earned by funds deposited in accordance with thischapter accrue to the trust.
(c) The trustee shall disburse the funds deposited in accordancewith this chapter to the named beneficiary to discharge an obligationarising from any contract described in section 5 of this chapter, uponreceipt of evidence satisfactory to the trustee that the contract hasbeen performed.
(d) A funeral home, licensed under IC 25-15 that is named asbeneficiary of funeral trust funds under this chapter shall annuallyreport the following to the state board of funeral service:
(1) The funeral home's name, Indiana license number, andofficers.
(2) The name and address of any trustee with which funeraltrust funds are deposited for the funeral home.
(e) No bonds or permits are required from funeral homes thatenter into contracts described in section 5 of this chapter.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.246-1985,SEC.26.
IC 30-2-10-9
Violations; offense
Sec. 9. (a) Except as provided in subsections (b) and (c), a personwho knowingly violates this chapter commits a Class Amisdemeanor.
(b) A person who knowingly or intentionally uses or disbursesfunds in a funeral trust established under this chapter for purposesother than the purposes required under this chapter commits a ClassC felony.
(c) A trustee that disburses funds in a funeral trust establishedunder this chapter without verifying:
(1) the death of the individual for whom services are to beprovided under the contract; and
(2) that the beneficiary fully performed all funeral and burialservices provided for in the contract;
through the use of documentation required under rules adopted bythe state board of funeral and cemetery service established byIC 25-15-9-1 commits a Class A infraction.
As added by Acts 1982, P.L.179, SEC.2. Amended by P.L.207-1993,SEC.24; P.L.113-2007, SEC.9; P.L.61-2008, SEC.6; P.L.1-2009,SEC.152.
IC 30-2-10-10
Incapacity, resignation, and removal of trustees
Sec. 10. IC 30-4-3-29 governs procedures concerning theincapacity, resignation, or removal of a trustee.
As added by Acts 1982, P.L.179, SEC.2.