Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 261-S.F.No. 3080 
                  An act relating to auditing; modifying certain 
                  provisions relating to preneed funeral trust accounts; 
                  amending Minnesota Statutes 2000, section 149A.97, 
                  subdivision 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 149A.97, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEPOSIT OF TRUST FUNDS AND DISCLOSURES.] Within 
        15 calendar days after receipt of any money required to be held 
        in trust, all of the money must be deposited in a banking 
        institution, savings or building and loan association, or credit 
        union, organized under state or federal laws, the accounts of 
        which are insured by an instrumentality of the federal 
        government.  The money must be carried in a separate account 
        with the name of the depositor and the purchaser as trustees for 
        the beneficiary.  The depositor as trustee shall not have power 
        to distribute funds, either principal or interest, from the 
        account until the death of the beneficiary, subject to section 
        149A.80.  For purposes of this section, distribute does not mean 
        transferring the trust funds to different investment accounts 
        within an institution or between institutions provided that the 
        depositor as trustee does not have sole access to the funds in a 
        negotiable form.  This section shall be construed to limit the 
        depositor's access to trust funds, in a negotiable form, prior 
        to the death of a beneficiary.  The preneed arrangements trust 
        shall be considered an asset of the purchaser until the death of 
        the beneficiary, whereupon the money shall be considered an 
        asset of the estate of the beneficiary, to the extent that the 
        value of the trust exceeds the actual value for the goods and 
        services provided at-need.  The location of the trust account, 
        including the name and address of the institution in which the 
        money is being held and any identifying account numbers, must be 
        disclosed in writing to the beneficiary by the depositor as 
        trustee at the time the money is deposited and when there are 
        any subsequent changes to the location of the trust 
        account.  The depositor shall annually report to the beneficiary 
        the amount of funds in the beneficiary's preneed arrangement 
        trust account, including principal and accrued interest.  The 
        depositor may arrange for the banking institution, savings or 
        building and loan association, or credit union to issue such 
        reports.  Upon the provision of any funeral or burial site goods 
        or services in connection with a preneed arrangement, the 
        depositor shall provide a statement itemizing the goods or 
        services provided and cost of such goods or services and 
        describing the disposition of all funds in the account. 
           [EFFECTIVE DATE.] This section is effective January 1, 2003.
           Presented to the governor March 20, 2002 
           Signed by the governor March 22, 2002, 2:07 p.m.