IC 30-2-9
    Chapter 9. Prepaid Funeral Plans and Funeral Trust FundsEstablished Before 1982

IC 30-2-9-1
Agreement or contract; personal property, merchandise, orservices; General Cemetery law
    Sec. 1. (a) Any payment of money made to any person, firm,partnership, association, limited liability company, or corporation,other than a bank or trust company, upon any agreement or contract,or any series or combination of agreements or contracts, which hasfor a purpose the furnishing or performance of funeral services, orthe furnishing or delivery of any personal property, merchandise, orservices of any nature in connection with the final disposition of adead human body, for future use at a time determinable by the deathof the person or persons whose body or bodies are to be so disposedof, shall be held to be trust funds, and the person, firm, partnership,association, or corporation receiving said payments is herebydeclared to be a trustee thereof. This subsection applies only to sucha contract or agreement executed before July 1, 1978.
    (b) After June 30, 1978, it is unlawful to enter into any agreementor contract for a purpose described in subsection (a) unless theagreement or contract requires that all payments be made by thesettlor to an account in a:
        (1) bank;
        (2) trust company;
        (3) savings association; or
        (4) credit union;
whose principal office is in Indiana.
    (c) Nothing contained in this chapter shall be deemed or construedto apply to those persons, firms, partnerships, associations, limitedliability companies, or corporations covered by the "Indiana GeneralCemetery Law", IC 23-14-1.
(Formerly: Acts 1963, c.303, s.1.) As amended by Acts 1978,P.L.133, SEC.1; Acts 1979, P.L.272, SEC.1; P.L.8-1993, SEC.465;P.L.79-1998, SEC.92.

IC 30-2-9-1.5
Funeral trusts
    Sec. 1.5. (a) After June 30, 1978, but before July 1, 1982, anindividual may establish one (1) funeral trust under this section, inlieu of any other arrangement for advance payment of funeral andburial expense, such as a joint account, that may be lawful undersection 1(b) of this chapter.
    (b) A funeral trust established under this section must:
        (1) be irrevocable;
        (2) have only one (1) settlor;
        (3) name a financial institution qualified under section 1(b) ofthis chapter in which all funds are to be deposited;
        (4) name an embalmer, a funeral director, or funeral home,

licensed under IC 25-15, as sole beneficiary;
        (5) be accompanied by a contract between the settlor andbeneficiary as provided in subsection (c); and
        (6) be either a time deposit, or account, or certificate of depositin a financial institution, in the names of the settlor and thebeneficiary payable on death to the survivor, or name thedesignated financial institution as sole trustee.
    (c) A funeral trust contract must specify in detail the funeral andburial services to be provided by the beneficiary, and must specifythe place of the funeral and the place of burial or other disposition.The contract must contain an acknowledgement by the settlor that heunderstands the irrevocable nature of the trust. In addition, thecontract may provide for reasonable adjustment of the services to beprovided if:
        (1) the settlor has not contributed the full amount specified inthe contract at the time of his death; or
        (2) the reasonable expense of transporting the corpse a distancegreater than twenty-five (25) miles to the place of the funeral orthe place of burial is paid by the beneficiary.
The contract may contain other provisions not inconsistent with thischapter, including a provision for disposition of income on the trustfunds that results in a balance greater than the contribution agreed toby the settlor.
    (d) The settlor may change the beneficiary, but any newbeneficiary must be licensed under IC 25-15 or be a funeral directoror funeral home licensed under the laws of another state. The settlormay also change the place of the funeral or the place of burial.
    (e) Any trust established under section 1(a) of this chapter may beconverted to a funeral trust, provided for under this section, byagreement of the parties to the original contract, payment of all trustfunds into the funeral trust, and satisfaction of all requirements ofthis section including execution of the required contract.
    (f) Any trust established under this chapter may be converted toa funeral trust provided for under IC 30-2-10 by satisfaction of allrequirements of that chapter.
As added by Acts 1978, P.L.133, SEC.2. Amended by Acts 1979,P.L.272, SEC.2; Acts 1982, P.L.179, SEC.1; P.L.246-1985, SEC.20.

IC 30-2-9-2
Deposit of funds; investments
    Sec. 2. All trust funds paid under section 1(a) of this chapter shallbe deposited in a bank or trust company whose principal office is inthis state, or invested in a savings and loan, or building and loanassociation whose principal office is in this state, in the name of thetrustee, as trustee, within thirty (30) days after receipt thereof, andshall be held by such trustee in trust, subject to the provisions of thischapter.
(Formerly: Acts 1963, c.303, s.2.) As amended by Acts 1978,P.L.133, SEC.3.
IC 30-2-9-3
Permits; fidelity bonds; accounts, books, and records
    Sec. 3. No person, firm, partnership, association, limited liabilitycompany, or corporation may accept or hold trust funds paid undersection 1(a) of this chapter without first securing from the state boardof funeral service a permit to accept and hold the funds. Applicationsfor the permit must be in writing, signed by the applicant, and dulyverified on forms furnished by the board. Each application mustcontain at least the following:
        (1) The full name and address (both residence and place ofbusiness) of the applicant, and every member, officer, anddirector of the applicant if the applicant is a firm, partnership,association, limited liability company, or corporation. Anypermit issued in response to the application is valid for two (2)years, only at the address stated in the application for theapplicant or at the address as may be approved by the board.
        (2) A detailed statement of the applicant's assets and liabilities.
        (3) A fidelity bond executed by the applicant and a suretycompany authorized to do business in this state in the amountnot exceeding ten thousand dollars ($10,000) as the board mayrequire.
Upon receipt of such application and bond, the board shall issue apermit unless it determines that the applicant has made falsestatements or representations in the application, is insolvent, hasconducted or is about to conduct his business in a fraudulent manner,or is not duly authorized to transact business in this state. The boardmay require an additional bond from time to time in amounts equalto one tenth (1/10) of the trust funds held by the permittee. The bondmust run to the state of Indiana for the use and benefit of thebeneficiaries of the trust funds. The permittee shall keep accurateaccounts, books, and records in this state of all transactions, copiesof all agreements, dates, and amounts of payments made andaccepted on all agreements, the names and addresses of thecontracting parties, the persons for whose benefit the funds areaccepted, and the names of the depositories of the funds. Thepermittee shall make reports to the board annually or at any othertimes that the board may require, on forms furnished by the board.Every application must be accompanied by a fee of ten dollars ($10)and every report must be accompanied by a fee of two dollars ($2).The permittee shall make all the books and records pertaining to thetrust funds available to the board for examination. The board, or aqualified person designated by it may at any time investigate thebooks, records, and accounts of the permittee with respect to its trustfunds and for that purpose may require the attendance of andexamine under oath all persons whose testimony he may require.
(Formerly: Acts 1963, c.303, s.3.) As amended by Acts 1978,P.L.133, SEC.4; P.L.246-1985, SEC.21; P.L.8-1993, SEC.466.

IC 30-2-9-4
Deposits or investments; interest or dividends; withdrawal;

forfeiture
    Sec. 4. The amount or amounts deposited or invested, withinterest or dividends thereon, if any, shall not be withdrawn until thedeath of the person or persons for whose funeral or burial such fundswere paid, unless sooner withdrawn and repaid to the person whooriginally paid the money under or in connection with said agreementor series of agreements or to his or her legal representative: Provided,That if the agreement or series of agreements provides for forfeitureand retention of any or all such payments by reason of default inpayment upon and according to the terms thereof, then upon any suchdefault and forfeiture the trustee may withdraw such deposits orinvestments: Provided, further, That nothing herein contained shallprohibit the change of depository by the trustee and the transfer oftrust funds from one depository to another. This section applies onlyto trust funds that include payments under section 1(a) of thischapter.
(Formerly: Acts 1963, c.303, s.4.) As amended by Acts 1978,P.L.133, SEC.5.

IC 30-2-9-5
Compensation and expenses of trustee
    Sec. 5. This chapter shall not be construed to prohibit a trusteeunder section 1(a) of this chapter from being reimbursed andreceiving from the fund its reasonable expenses in the custody andadministration of the funds and the usual and reasonablecompensation for its services as the trustee. However, the expensesand compensation shall be fixed by the state board of funeral servicein a reasonable amount based upon the principal fund and theearnings of the fund deposited or invested under each of theagreements or series of agreements. A financial institution trusteeunder section 1.5 of this chapter may be reimbursed for itsreasonable expenses from the fund, except the amount shall be fixedby the Indiana department of financial institutions.
(Formerly: Acts 1963, c.303, s.5.) As amended by Acts 1978,P.L.133, SEC.6; P.L.246-1985, SEC.22.

IC 30-2-9-6
Liquidated damages
    Sec. 6. It shall be unlawful for any such agreement or agreementsto provide for forfeiture and retention of payments upon any suchagreement or series of agreements as and for liquidated damages fordefault therein in excess of 10% of the payments made or $35.00,whichever sum is the larger.
(Formerly: Acts 1963, c.303, s.6.)

IC 30-2-9-7
False reports; illegal use or disbursement of funds
    Sec. 7. (a) Except as provided in subsection (b) or (c), a personwho violates this chapter or makes any false and fraudulent reportrequired under this chapter commits a Class B misdemeanor.    (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) Except as authorized in an agreement described in section 4 ofthis chapter permitting the early withdrawal of funds, a trustee thatdisburses funds in a funeral trust established under this chapterwithout 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.
(Formerly: Acts 1963, c.303, s.7.) As amended by Acts 1978, P.L.2,SEC.3001; P.L.113-2007, SEC.8; P.L.61-2008, SEC.4.

IC 30-2-9-8
Partial invalidity of law
    Sec. 8. If any part or parts of this chapter shall be heldunconstitutional, the remaining provisions shall be given full forceand effect as completely as if the part held unconstitutional had notbeen included herein, if such remaining part or parts can then beadministered for the purpose of licensing and regulating paymentsfor future use in connection with the disposition of a dead humanbody, as provided for in this chapter.
(Formerly: Acts 1963, c.303, s.8.) As amended by Acts 1982,P.L.171, SEC.116.