§ 23-14-48-2.6 — Conversion of perpetual care fund into total return unitrust

Indiana § 23-14-48-2.6

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 14: CEMETERY ASSOCIATIONS
• Ch. 48: Cemetery Perpetual Care Fund

Text

6. (a) If a perpetual care fund established
under this chapter is a trust, the trust may be converted into a total
return unitrust under IC 30-2-15.
(b) Withdrawals may be made from a trust converted into a total
return unitrust as provided in:
(1) the governing trust instrument of the trust; and
(2) IC 30-2-15.
(c) Except for withdrawals for the payment of expenses as allowed
by:
(1) the governing trust instrument of the trust; and
(2) IC 30-2-15;
all withdrawals from a trust converted into a total return unitrust shall
be devoted to the perpetual care of the cemetery, including the
immediate maintenance needs of the cemetery.
(d) This subsection applies to a unitrust distribution made in any
given year. Before making a unitrust distribution, the trustee must do
the following:
(1) Evaluate the change that a unitrust distribution will make to
the trust's principal over time.
(2) Ensure that the current market value of the trust at the time of
the trustee's evaluation is greater than the sum of the following
amounts:
(A) Eighty percent (80%) of the trust's principal amount at the
time of the trust's conversion to a unitrust.
(B) Any required contributions made to the trust after the trust's
conversion to a unitrust.
If the current market value of the trust is less than the amount required
by this subsection, any distribution made from the trust shall be
consistent with section 2 of this chapter.

Legislative History

As added by P.L.33-2019, SEC.3.