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HF 3462

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/14/2002
1st Engrossment Posted on 02/28/2002

Current Version - 1st Engrossment

  1.1                          A bill for an act 
  1.2             relating to auditing; modifying certain provisions 
  1.3             relating to preneed funeral trust accounts; amending 
  1.4             Minnesota Statutes 2000, section 149A.97, subdivision 
  1.5             5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 149A.97, 
  1.8   subdivision 5, is amended to read: 
  1.9      Subd. 5.  [DEPOSIT OF TRUST FUNDS AND DISCLOSURES.] Within 
  1.10  15 calendar days after receipt of any money required to be held 
  1.11  in trust, all of the money must be deposited in a banking 
  1.12  institution, savings or building and loan association, or credit 
  1.13  union, organized under state or federal laws, the accounts of 
  1.14  which are insured by an instrumentality of the federal 
  1.15  government.  The money must be carried in a separate account 
  1.16  with the name of the depositor and the purchaser as trustees for 
  1.17  the beneficiary.  The depositor as trustee shall not have power 
  1.18  to distribute funds, either principal or interest, from the 
  1.19  account until the death of the beneficiary, subject to section 
  1.20  149A.80.  For purposes of this section, distribute does not mean 
  1.21  transferring the trust funds to different investment accounts 
  1.22  within an institution or between institutions provided that the 
  1.23  depositor as trustee does not have sole access to the funds in a 
  1.24  negotiable form.  This section shall be construed to limit the 
  1.25  depositor's access to trust funds, in a negotiable form, prior 
  2.1   to the death of a beneficiary.  The preneed arrangements trust 
  2.2   shall be considered an asset of the purchaser until the death of 
  2.3   the beneficiary, whereupon the money shall be considered an 
  2.4   asset of the estate of the beneficiary, to the extent that the 
  2.5   value of the trust exceeds the actual value for the goods and 
  2.6   services provided at-need.  The location of the trust account, 
  2.7   including the name and address of the institution in which the 
  2.8   money is being held and any identifying account numbers, must be 
  2.9   disclosed in writing to the beneficiary by the depositor as 
  2.10  trustee at the time the money is deposited and when there are 
  2.11  any subsequent changes to the location of the trust 
  2.12  account.  The depositor shall annually report to the beneficiary 
  2.13  the amount of funds in the beneficiary's preneed arrangement 
  2.14  trust account, including principal and accrued interest.  The 
  2.15  depositor may arrange for the banking institution, savings or 
  2.16  building and loan association, or credit union to issue such 
  2.17  reports.  Upon the provision of any funeral or burial site goods 
  2.18  or services in connection with a preneed arrangement, the 
  2.19  depositor shall provide a statement itemizing the goods or 
  2.20  services provided and cost of such goods or services and 
  2.21  describing the disposition of all funds in the account. 
  2.22     [EFFECTIVE DATE.] This section is effective January 1, 2003.