KRS § 367.934 — KY Code / Title XXIX / Chapter 367 / Section 367.934
367.934 Preneed payments and increments as trust funds -- Conditions required for disbursements
Status: in_force

367.934 Preneed payments and increments as trust funds -- Conditions required

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.