While most state funeral director associations sponsor a master preneed trust for their members, we cannot find a single state cemetery association that sponsors a master care fund trust for its members.    With attendance at cemetery association conventions declining, we are seeing a trend where multiple state associations are banding to create larger regional associations.  But still, we cannot find where any regional cemetery association that sponsors a master care fund trust. 

State cemetery associations are dependent upon their largest members for financial support and leadership.  More than one such member has shared that he avoided the master trust discussion out of fear of being pressured to participate.   Banks that could be receptive to administering a master care fund may be requiring a ‘critical mass’ of assets to ensure a minimum level of fiduciary revenue.   Consequently, it may be difficult for a state association to reach that requirement without the support of the larger cemetery members.   Core cemetery members are typically unwilling to give up exclusive control over their care fund trust, and so discussion regarding large member participation in the association master care fund trust could often be a non-starter. 

Regional cemetery associations face another hurdle to establishing a master care fund trust.  State laws differ as to fixed distribution options and whether capital gains can be included in net income distributions.  It could be difficult to incorporate that level of administrative flexibility into a single care fund program.