§ 30-2-9-1.5 — Funeral trusts

Indiana § 30-2-9-1.5

• Jurisdiction: Indiana
• Art. 2: GENERAL PROVISIONS
• Ch. 9: Prepaid Funeral Plans and Funeral Trust Funds

Text

5. (a) After June 30, 1978, but before July 1,
1982, an individual may establish one (1) funeral trust under this
section, in lieu of any other arrangement for advance payment of
funeral and burial expense, such as a joint account, that may be lawful
under section 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) of this
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 and
beneficiary as provided in subsection (c); and
(6) be either a time deposit, or account, or certificate of deposit in
a financial institution, in the names of the settlor and the
beneficiary payable on death to the survivor, or name the
designated financial institution as sole trustee.
(c) A funeral trust contract must specify in detail the funeral and
burial services to be provided by the beneficiary, and must specify the
place of the funeral and the place of burial or other disposition. The
contract must contain an acknowledgement by the settlor that he
understands the irrevocable nature of the trust. In addition, the contract
may provide for reasonable adjustment of the services to be provided
if:
(1) the settlor has not contributed the full amount specified in the
contract at the time of his death; or
(2) the reasonable expense of transporting the corpse a distance
greater than twenty-five (25) miles to the place of the funeral or
the place of burial is paid by the beneficiary.
The contract may contain other provisions not inconsistent with this
chapter, including a provision for disposition of income on the trust
funds that results in a balance greater than the contribution agreed to
by the settlor.
(d) The settlor may change the beneficiary, but any new beneficiary
must be licensed under IC 25-15 or be a funeral director or funeral
home licensed under the laws of another state. The settlor may also
change the place of the funeral or the place of burial.
(e) Any trust established under section 1(a) of this chapter may be
converted to a funeral trust, provided for under this section, by
agreement of the parties to the original contract, payment of all trust
funds into the funeral trust, and satisfaction of all requirements of this
section including execution of the required contract.
(f) Any trust established under this chapter may be converted to a
funeral trust provided for under IC 30-2-10 by satisfaction of all
requirements 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.