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.
(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 he 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 he 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 his 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.
Last modified: May 27, 2006