32-1391.08. Prearranged funeral agreements funded by trust; death of beneficiary

A. After the death of a beneficiary of a prearranged funeral agreement funded by trust, the financial institution shall release a portion of the remaining trust funds equal to the funeral establishment's charges for funeral goods and services for the beneficiary's funeral arrangement to the funeral establishment on receipt of the beneficiary's certified death certificate and a certificate from the funeral establishment stating that it provided the requested funeral goods and services and stating the total charges for those goods and services.

B. After the death of a beneficiary of a fixed price prearranged funeral agreement funded by trust, the financial institution may release a portion of the trust funds equal to the funeral establishment's charges for the beneficiary's funeral arrangements and all then accrued interest on the trust funds to the funeral establishment on receipt of the beneficiary's certified death certificate and a certificate from the establishment stating that it provided the requested funeral goods and services, stating that the establishment agreed to fix the prices of those goods and services and the purchaser agreed to convey the accrued interest on performance of the funeral arrangements and stating the total charges for those goods and services.

C. If any trust funds remain after disbursement to the funeral establishment, the remaining funds shall be paid to the estate of the beneficiary.

D. If the funeral establishment does not provide funeral goods and services for the beneficiary's funeral arrangements within thirty days after the death of the beneficiary, all remaining trust funds shall be paid immediately to the estate of the beneficiary. This shall not be the exclusive remedy available to the purchaser or the estate of the beneficiary if there has been a breach of contract.

E. If the funeral establishment provides any funeral goods or services to the purchaser or beneficiary before the death of the beneficiary, the provision shall not constitute performance under the prearranged funeral agreement and shall not entitle the funeral establishment to any portion of the trust funds.