367.934 Preneed payments and increments as trust funds -- Conditions required
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/ky/367-934A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
for disbursements.
(1)All payments of money made to any person, partnership, association, or corporation
upon any agreement or contract, or any series or combination of agreements or
contracts, but not including the furnishing of cemetery lots or mausoleums, which
has for a purpose the furnishing or performance of funeral services, or the
furnishing or delivery of personal property, merchandise, or services of any nature
in connection with the final disposition of a dead human body, for future use at a
time determinable by the death of the person whose body is to be disposed of, are
held to be trust funds. The person, partnership, association, or corporation receiving
the payments is declared to be the agent thereof, and shall deposit all payments in a
trust account with a bank or trust company or invest said payments in a savings and
loan association or federally chartered credit union. The trustee shall be the
financial institution holding said funds. All of the interest, dividends, increases, or
accretions of whatever nature earned by the funds deposited in a trust account shall
remain with the principal of such account and become a part thereof, subject to all
of the regulations concerning the principal of said fund herein contained. The agent
shall have the authority at any time to transfer or redesignate the trustee of said
funds in his or her discretion upon notification to the Attorney General. In case of
any transfer, the former trustee shall transfer funds directly to and payable to the
newly designated trustee or its representative.
(2)All payments made to the agent under the agreement, contract, or plan are and shall
remain trust funds with the financial institution until the death of the person for
whose service the funds were paid and until the delivery of all merchandise and full
performance of all services called for by the agreement, contract, or plan, except
where payment is made pursuant to a request for refund.
(3)The funds shall not be paid by the financial institution until a certified statement is
furnished to the financial institution by the agent setting forth that all of the terms
and conditions of the agreement have been fully performed by the person,
association, partnership, firm, or corporation. Any balance remaining in the fund
after payment for the merchandise and services as set forth in the agreement,
contract, or plan shall be paid to the estate of the beneficiary of the agreement,
contract, or plan.
(4)The funds shall not be paid by the financial institution until the agent has proven the
death of the person for whose service the funds were paid by furnishing the
financial institution with a verified or certified copy of a record verifying the death,
issued by the state registrar of the Vital Statistics Branch or its successor agency as
authorized by KRS Chapter 213, or a provisional certificate of death as described in
KRS 213.076.
(5)No provision of KRS 367.932 to 367.974 shall be construed to apply to contracts
for funeral service or merchandise sold as preneed and burial insurance policies
which are regulated by the Department of Insurance of this state.