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Enrolled Senate Bill (S)

DIGEST

Cemetery perpetual care fund distributions. Provides that a cemetery perpetual care fund that is a trust may be converted into a total return unitrust (a trust from which the trustee pays out an amount computed as a percentage of the fair market value of the trust assets instead of paying out the income of the trust). Provides that the percentage used to compute the amount paid out from a perpetual care fund converted into a total return unitrust must: (1) represent a reasonable current return from the trust; (2) be agreed upon in writing by the trustee and the owner Cemetery perpetual care fund distributions. Provides that a cemetery perpetual care fund that is a trust may be converted into a total return unitrust (a trust from which the trustee pays out an amount computed as a percentage of the fair market value of the trust assets instead of paying out the income of the trust). Provides that the percentage used to compute the amount paid out from a perpetual care fund converted into a total return unitrust must: (1) represent a reasonable current return from the trust; (2) be agreed upon in writing by the trustee and the owner of the cemetery or ordered by the court having jurisdiction of the trust; (3) serve the purpose of the perpetual care of the cemetery; and (4) be not less than 3% or more than 5%. Prevents certain distributions from being made from a total return unitrust in certain instances. Provides that, except for withdrawals for the payment of expenses, all withdrawals from a trust converted into a total return unitrust must be devoted to the perpetual care of the cemetery, including the immediate maintenance needs of the cemetery. ... View more