institution may withdraw funds from the trust account, as previously agreed in writing, to pay reasonable and necessary charges for the administrative and investment management services provided by the financial institution. 32-1391.07. Cancellation; prearranged funeral agreements funded by trust A. If a funeral establishment receives a written request from a purchaser of a prearranged funeral agreement funded by trust to terminate the agreement and refund the trust funds, the funeral establishment shall refund the remaining trust funds to the purchaser within five business days after it receives the request. A financial institution shall release the trust funds to the funeral establishment on receipt of a cancellation request signed by the purchaser and submitted by the funeral establishment. If the beneficiary is deceased, a written request to terminate the agreement may be submitted to the funeral establishment by the person designated on the prearranged funeral agreement, or if that person is not available, a request may be submitted by the person legally responsible for the beneficiary. B. If a request to terminate the agreement is received from the purchaser within three business days after the execution of the agreement, the funeral establishment shall, within five business days after receiving the request, refund all monies paid under the agreement including the full amount of any initial service fee paid by the purchaser. 32-1391.08. Prearranged funeral agreements funded by trust; death of beneficiary A. After the death of a beneficiary of a prearranged funeral agreement funded by trust, the financial institution shall release a portion of the remaining trust funds equal to the funeral establishment’s charges for funeral goods and services for the beneficiary’s funeral arrangement to the funeral establishment on receipt of the beneficiary’s certified death certificate and a certificate from the funeral establishment stating that it provided the requested funeral goods and services and stating the total charges for those goods and services. B. After the death of a beneficiary of a fixed price prearranged funeral agreement funded by trust, the financial institution may release a portion of the trust funds equal to the funeral establishment’s charges for the beneficiary’s funeral arrangements and all then accrued interest on the trust funds to the funeral establishment on receipt of the beneficiary’s certified death certificate and a certificate from the establishment stating that it provided the requested funeral goods and services, stating that the establishment agreed to fix the prices of those goods and services and the purchaser agreed to convey the accrued interest on performance of the funeral arrangements and stating the total charges for those goods and services. C. If any trust funds remain after disbursement to the funeral establishment, the remaining funds shall be paid to the estate of the beneficiary. D. If the funeral establishment does not provide funeral goods and services for the beneficiary’s funeral arrangements within thirty days after the death of the beneficiary, all remaining trust funds shall be paid immediately to the estate of the beneficiary. This shall not be the exclusive remedy available to the purchaser or the estate of the beneficiary if there has been a breach of contract.
of the beneficiary’s estate after the beneficiary’s death. 2. A funeral establishment or another person shall not withdraw, transfer, remove, commingle, encumber or use as collateral any monies paid to the establishment under a prearranged funeral agreement funded by trust. 3. All monies deposited and accrued interest in a prearranged funeral trust account shall be exempt from attachment, garnishment, execution and claims of creditors, receivers and trustees of the funeral establishment other than the claims of the beneficiary or the beneficiary’s estate. 4. All monies deposited and accrued interest in a prearranged funeral trust account up to a total of $5,000 shall be exempt from attachment, garnishment, execution and claims of creditors, receivers and trustees of the beneficiary other than the claims of the funeral establishment. D. A funeral establishment may direct the financial institution in which the trust monies are deposited to transfer the trust account to another financial institution after providing each participant in the trust with the name and location of the institution and the new trust account number. E. For the purposes of this section, “prudent investor” means a person who exercises the same care and expertise as a person of ordinary prudence, diligence, discretion and judgment would exercise in the management of the property of others, not in regard to speculation, but in regard to the permanent disposition of the funds considering the probable income as well as the probable safety of the capital to be invested. 32-1391.06. Service fees; prearranged funeral agreements funded by trust A. A funeral establishment may charge an initial service fee when a person enters into a prearranged funeral agreement funded by trust of not to exceed fifteen percent of the total amount agreed to be paid by the purchaser pursuant to the prearranged funeral agreement. If the amount to be paid by the purchaser is to be paid in installments, no more than one-half of any payment made by the purchaser may be applied to the initial service fee. If the agreement is canceled prior to the completion of the agreement, any portion of the initial service fee that has not yet been paid under the agreement is no longer due and payable to the establishment. The portion of any payment by the purchaser that is to be applied to the initial service fee shall be paid to the funeral establishment and not to the trust account. B. A funeral establishment may charge an annual service fee of not to exceed ten percent of the interest that has accrued on the trust funds during the preceding calendar year. After each calendar year while a prearranged funeral agreement funded by trust is in effect a financial institution may release a portion of the trust funds equal to the annual service fee on receipt of a certificate of entitlement to an annual service fee from the funeral establishment. C. The funeral establishment may direct the financial institution to pay, from time to time, from the monies in the trust account, any taxes that have accrued by reason of the income earned from funds deposited in the trust account. The payment may be made directly to the taxing authority or to the beneficiary of the trust account on the proper showing by the beneficiary that the beneficiary has paid the taxes. A financial
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