Illinois Administrative Code › Title 74 - PUBLIC FINANCE › Part 760 - REVISED UNIFORM UNCLAIMED PROPERTY ACT › Subpart B - PRESUMPTION OF ABANDONMENT › Section 760.270 - Property Related to Pre-need Death Care Contracts

Current through Register Vol. 48, No. 28, July 12, 2024
a) Illinois Funeral or Burial Funds Act [225
				ILCS 45 ]
1) Funds on deposit or held in
				trust pursuant to the Illinois Funeral or Burial Funds Act are covered under
				the Act pursuant to Section 15-201(9).
2) Proceeds of a life insurance policy or
				annuity contract, even if used to fund a pre-need contract pursuant to the
				Illinois Funeral or Burial Funds Act, are covered under the Act pursuant to
				Sections 15-201(8) and 15-211.
3)
				The relevant provisions of Section 4 of the Illinois Funeral or Burial Funds
				Act determine the amount to be reported and remitted as unclaimed property
				under the Act.
A)
If, after the death
				of the beneficiary, no funeral merchandise or services are provided or if the
				funeral is conducted by another provider, the seller may keep no more than 10%
				of the payments made under the pre-need contract or $300, whichever sum is
				less. The remainder of the trust funds or insurance or annuity proceeds shall
				be forwarded to the legal heirs of the deceased beneficiary or as determined by
				probate action.
[225 ILCS
				45/4 (c-5)] If the legal heirs of the deceased
				beneficiary cannot be located and there is not an active probate action, the
				remainder of trust funds should be reported and remitted as unclaimed property
				pursuant to Section 15-201(9) of the Act and insurance or annuity proceeds
				should be reported and remitted pursuant to Sections 15-201(8) and 15-211 of
				the Act.
B) Refunds provided
				pursuant to Section 4 of the Illinois Funeral or Burial Funds Act may become
				unclaimed property as the debt of a business association under Section
				15-201(5) of the Act.
4)
				If a pre-need contract requires entrustment under both the Illinois Funeral or
				Burial Funds Act and the Illinois Pre-Need Cemetery Sales Act [815 ILCS 390 ]
				and the only item that requires entrustment under the Illinois Pre-Need
				Cemetery Sales Act is an outer burial container, then, for the purposes of
				determining a presumption of abandonment under the Act, all amounts entrusted
				under the pre-need contract shall be treated as though they were entrusted
				under the Illinois Funeral or Burial Funds Act.
5)
Funds on deposit or held in trust
				pursuant to the Illinois Funeral or Burial Funds Act
are presumed
				abandoned
the earliest of:
A)
2 years after the date of death of the beneficiary;
B)
one year after the date the
				beneficiary has attained, or would have attained if living, the age of 105 when
				the holder does not know whether the beneficiary is deceased;
				or
C)
40 years
				after the contract for prepayment was executed, unless the apparent owner has
				indicated an interest in the property more than 40 years after the contract for
				prepayment was executed, in which case, 3 years after the last indication of
				interest in the property by the apparent owner.
[765 ILCS
				1026/15-201 ]
6) Pre-need funeral trusts established in
				jurisdictions other than the State of Illinois are generally not governed by
				the Illinois Funeral or Burial Funds Act. Pursuant to federal common law (U.S.
				Supreme Court Texas v. New Jersey, 379 U.S. 674 (1965); Pennsylvania v. New
				York, 407 U.S. 206 (1972); and Delaware v. New York, 507 U.S. 490 (1993)) and
				the Act, these non-Illinois pre-need funeral trusts should be reported and
				remitted to the administrator as unclaimed property when the address of the
				apparent owner in the records of the holder is in Illinois. The amount to be
				reported and remitted for these non-Illinois pre-need funeral trusts is
				determined by applicable law, including but not limited to the pre-need law of
				the state under which the contract was entered into.