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IN SB0381
Bill
AI Summary
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Cemetery perpetual care funds established as trusts may be converted into total return unitrusts under IC 30-2-15, allowing trustees to pay out a percentage of fair market value rather than just income.
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Unitrust distribution rates must be between 3% and 5%, agreed upon in writing by the trustee and cemetery owner or ordered by a court, and must serve the purpose of perpetual cemetery care.
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Before making unitrust distributions, trustees must evaluate the impact on principal over time and ensure the trust's current market value exceeds 80% of the principal at conversion plus any subsequent required contributions.
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All withdrawals from converted unitrusts (except for expenses) must be devoted to perpetual care of the cemetery, including immediate maintenance needs.
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Cemeteries organized after June 30, 1997 must deposit $100,000 in the perpetual care fund before selling burial lots; once the fund reaches $200,000, the initial deposit may be returned to the cemetery.
Legislative Description
Cemetery perpetual care fund distributions. Provides that a cemetery perpetual care fund that is a trust may be converted into a total return unitrust (a trust from which the trustee pays out an amount computed as a percentage of the fair market value of the trust assets instead of paying out the income of the trust). Provides that the percentage used to compute the amount paid out from a perpetual care fund converted into a total return unitrust must: (1) represent a reasonable current return from the trust; (2) be agreed upon in writing by the trustee and the owner of the cemetery or ordered by the court having jurisdiction of the trust; (3) serve the purpose of the perpetual care of the cemetery; and (4) be not less than 3% or more than 5%. Prevents certain distributions from being made from a total return unitrust in certain instances. Provides that, except for withdrawals for the payment of expenses, all withdrawals from a trust converted into a total return unitrust must be devoted to the perpetual care of the cemetery, including the immediate maintenance needs of the cemetery.
Last Action
Public Law 33
4/18/2019