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 this
chapter, in lieu of any other arrangements for advance payment for
funeral 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, trust
companies, and other institutions
Sec. 2. It is unlawful to enter into any agreement or contract for
a purpose described in section 1 of this chapter unless the agreement
or contract requires that all payments be made by the settlor to an
account 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 only
if it:
(1) is irrevocable;
(2) has only one (1) settlor;
(3) names as trustee an Indiana institution qualified under
section 2 of this chapter, and requires that all funds be
deposited in that institution;
(4) names a funeral home, licensed under IC 25-15, as sole
beneficiary; and
(5) is accompanied by a written contract between settlor and
beneficiary 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 under
this chapter, may be reimbursed and receive from the funds its
reasonable expenses in the custody and administration of the funds,
and is entitled to the usual and reasonable compensation for its
services as trustee. The expenses and compensation shall be paid in
accordance 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 this
chapter must be in writing and contain, as a minimum, the following
provisions:
(1) Details of the professional services, facilities, equipment,
and a description of merchandise to be provided by the
beneficiary. 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 deceased
individual; and
(B) is not airtight and watertight;
the details must include a written statement indicating that the
vault is not airtight and watertight.
(2) A provision that the beneficiary may provide merchandise
of equal or better quality if the merchandise contracted for is no
longer available at the time the merchandise is to be provided.
(3) The place of the funeral and the place of the burial or other
final disposition to be made of the decedent.
(4) An acknowledgment by the settlor that the settlor
understands the irrevocable nature of the trust.
(5) A provision for reasonable adjustment of the services, or
cost of services, if the body is transported a distance greater
than twenty-five (25) miles to the place of funeral or the place
of burial or final disposition and transportation of a distance in
excess of twenty-five (25) miles was not contemplated at the
time of the execution of the contract.
(6) A provision for full payment of the contract amount by the
settlor, a description of the manner in which the funds are to be
deposited, and a statement that the interest will accrue to the
trust account and a further statement that the principal and
interest earned shall inure to the beneficiary to cover all the
costs incident to the beneficiary's performance of the contract,
any excess to be refunded to the estate of the settlor or to the
heirs 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 board
of funeral service.
(11) A provision that except under the circumstances described
in subsection (12), only the settlor may change the beneficiary,
that the settlor may make the change at any time, and that the
change is not effective until written notification is given to the
original beneficiary.
(12) A provision that allows the state board of funeral service
to change the beneficiary by naming a funeral home as new
beneficiary if the original beneficiary becomes deceased,
dissolved, terminated, or otherwise loses beneficiary status as
a licensee of the state board, and the settlor or the settlor's
guardian or personal representative fails to select a qualified
beneficiary.
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 a
funeral home or a funeral director licensed in another state; and
(2) give written notification to the funeral home originally
named 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 the
contract.
(b) If a contract has been approved and signed by both parties and
a copy of the contract has been delivered to the settlor, no further
notification 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 reports
from beneficiaries
Sec. 8. (a) Indiana financial institutions in which trust funds have
been deposited in accordance with this chapter may place the funds
in a common or commingled trust fund under a single trust
instrument. The trustee shall maintain a separate accounting record
for each trust fund.
(b) All interest earned by funds deposited in accordance with this
chapter accrue to the trust.
(c) The trustee shall disburse the funds deposited in accordance
with this chapter to the named beneficiary to discharge an obligation
arising from any contract described in section 5 of this chapter, upon
receipt of evidence satisfactory to the trustee that the contract has
been performed.
(d) A funeral home, licensed under IC 25-15 that is named as
beneficiary of funeral trust funds under this chapter shall annually
report the following to the state board of funeral service:
(1) The funeral home's name, Indiana license number, and
officers.
(2) The name and address of any trustee with which funeral
trust funds are deposited for the funeral home.
(e) No bonds or permits are required from funeral homes that
enter 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 person
who knowingly violates this chapter commits a Class A
misdemeanor.
(b) A person who knowingly or intentionally uses or disburses
funds in a funeral trust established under this chapter for purposes
other than the purposes required under this chapter commits a Class
C felony.
(c) A trustee that disburses funds in a funeral trust established
under this chapter without verifying:
(1) the death of the individual for whom services are to be
provided under the contract; and
(2) that the beneficiary fully performed all funeral and burial
services provided for in the contract;
through the use of documentation required under rules adopted by
the state board of funeral and cemetery service established by
IC 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 the
incapacity, resignation, or removal of a trustee.
As added by Acts 1982, P.L.179, SEC.2.