Current through Register 1531, September 27, 2024
(1) All Funeral
Trust Accounts shall be established and administered in compliance with the
requirements of 239 CMR 4.09.
(2)
Creation of Funeral Trust Accounts. Where a Pre-need
Funeral Contract will be funded through a Funeral Trust Account, the Licensed
Funeral Establishment shall deposit all funds made payable to a banking
institution received in connection with that Pre-need Funeral Contract in a
Funeral Trust Account within five business days after the expiration of the
"cooling-off" period described in
239 CMR
4.07(1). Every such Funeral
Trust Account shall:
(a) Designate a federal
or state-chartered banking institution which has trust powers, or a trust
company, within the Commonwealth of Massachusetts as the Trustee of said
Funeral Trust Account;
(b)
Designate the person for whom the Funeral Goods and/or Services are to be
provided as the Beneficiary of said Funeral Trust Account;
(c) Indicate that the funds are to be used
solely for the purpose of paying for Funeral Goods and/or Services and
Non-funeral Establishment Charges or "Cash Advance Item" Charges as indicated
in the Itemized Statement of Funeral Goods and Services required by
239 CMR
4.02(5); and
(d) Provide that the entire account balance
shall be payable to the Licensed Funeral Establishment which provides the
specified Funeral Goods and/or Services to the Beneficiary at time of death in
accordance with
239 CMR 4.00.
(3)
Investment
Requirements. The funds placed in a Funeral Trust Account may be
invested in any form of investment which may lawfully be established or
maintained by the trust department of the banking institution or trust company
which is serving as the Trustee of that Funeral Trust Account. All funds
deposited in that Funeral Trust Account shall be invested and managed in
accordance with M.G.L. c. 203C.
(4)
Common or Commingled Trust Accounts. Funds made
payable to a banking institution received in connection with more than one
Pre-need Funeral Contract may be deposited in a single common or commingled
Funeral Trust Account under the terms of a single trust instrument, provided
that:
(a) The common or commingled Funeral
Trust Account is established and administered in accordance with all applicable
requirements of 239 CMR 4.09; and
(b) Separate records, which meet the
requirements of
239 CMR
4.12(1)(e), are maintained
for each customer whose funds are deposited in the common or commingled Funeral
Trust Account.
(5)
Obligations to Locate Trust Beneficiary.
(a) If a Licensed Funeral Establishment which
is a party to a Pre-need Funeral Contract does not provide the Funeral Goods
and/or Services for the Beneficiary of that contract upon his or her death,
then, upon receipt of a certified copy of the death certificate of such
Beneficiary, the Trustee of any Funeral Trust Account established to fund said
Pre-need Funeral Contract shall pay the assets of said Funeral Trust Account to
the estate or legal representative of the named Beneficiary in accordance with
the applicable requirements of 239 CMR 4.09.
(b) If a Licensed Funeral Establishment has
not received notice of the death of the named Beneficiary of a Pre-need Funeral
Contract for whom a Funeral Trust Account has been established under 239 CMR
4.09 within 110 years of the Beneficiary's date of birth, said funeral
establishment shall take all reasonable steps to contact that Beneficiary or
his or her legal representative to inform them of the existence of said Funeral
Trust Account. A written notice of the existence of said Funeral Trust Account,
sent via certified mail, return receipt requested, to the last
known address of the trust Beneficiary and his or her legal representative
shall be sufficient to satisfy the requirements of 239 CMR
4.09(5)(b).
(c) If, after a
reasonable search, a Licensed Funeral Establishment is unable to locate the
Beneficiary of said Funeral Trust Account, the funeral establishment shall
notify the Trustee of the account, and the Trustee shall turn over all funds in
the Funeral Trust Account to the Treasurer of the Commonwealth, in accordance
with the laws of the Commonwealth. Any such transfer of funds to the Treasurer
of the Commonwealth shall constitute a complete release of all obligations of
such Licensed Funeral Establishment pursuant to the Pre-need Funeral
Contract.
