Cemetery Master Trusts

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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. …

Cemetery owners have two choices for their care fund trust: the local bank or the national bank that solicits death care trusts. 

When the local bank is used, the care fund is typically administered like an estate planning trust.  The bank’s compliance office may be unfamiliar with the applicable state cemetery law and its restrictions…

With legislation introduced this past January, Illinois could join those states which expressly authorize cemetery fiduciaries to take the unitrust election and make fixed distributions to cemeteries.  Senate Bill No. 3207 proposes to amend Illinois’ Cemetery Care Act to add provisions which would define ‘total return distribution’ and thereby allow care fund trusts to make…

We believe three fiduciary powers are crucial to reviving cemetery care funds: investment diversification, unitrust elections and the power to adjust.  It has been more than 12 years since we first posted about the need to repair cemetery care funds (Cemetery Endowed Care Funds and the Fixed Income Investment).  That post touched on…

A Google search of “state funeral association master trust” will return hyperlinks to dozens of state funeral director associations.  In the 1970’s, funeral associations began establishing master preneed trusts as an alternative to passbook savings accounts.  As preneed gained acceptance with funeral directors, the associations saw the opportunity to provide administration and create a revenue…