GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S D
SENATE DRS35204-LU-95 (03/12)
Short Title: Amend Uniform Prudent Investor Act. |
(Public) |
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Sponsors: |
Senator Bingham (Primary Sponsor). |
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Referred to: |
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A BILL TO BE ENTITLED
AN ACT to amend the uniform prudent investor act and to make conforming changes to the laws regulating cemeteries and the practice of funeral service as related to trust funds.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 36C-9-901(d)(1) reads as rewritten:
"(d) This Article does not apply to:
(1) Unless the trust provides otherwise by specific reference to this Article:
a. Trusts under any federal employee retirement income security statute or other retirement or pension trusts;
b. Trusts
that are created by legislative act;
c. Trusts that are created by or under premarital or postmarital agreements, divorce settlements, settlements of other proceedings or disputes;
d. Transfers under a Uniform Transfers to Minors Act;
e. Transfers under a Uniform Custodial Trust Act; or
f. Honorary trusts, trusts for pets, and trusts for cemetery lots."
SECTION 2. G.S. 65-60.1(e) reads as rewritten:
"(e) Any trustee
shall invest and reinvest cemetery trust funds in the same manner as
provided by law for the investment of trust funds by the clerk of the superior
court; provided, however, that this subsection does not apply to a perpetual
trust fund described in G.S. 65-64 or cemetery trust funds held in a fund
designated as Trust Fund "A" pursuant to G.S. 65-64(e), which
may be invested and reinvested in accordance with G.S. 32-71."
SECTION 3. G.S. 90-210.61(a)(1) reads as rewritten:
"(a) Preneed funeral funds are subject to the provisions of this Article and shall be deposited or applied as follows:
(1) If the preneed
funeral contract purchaser chooses to fund the preneed funeral contract by a
trust deposit or deposits, the preneed licensee shall deposit all funds in an
insured account in a financial institution, in trust, in the preneed licensee's
name as trustee within five business days.accordance with
G.S. 32-71 within 30 days from the end of the calendar month in which
payment is received. The preneed licensee, at the time of making the deposit
as trustee,deposit, shall furnish to the financial institutiontrustee
the name of each preneed funeral contract purchaser and the amount of payment
on each for which the deposit is being made. The preneed licensee may establish
an individual trust fund for each preneed funeral contract or a common trust
fundtrust account for all preneed funeral contracts. The trust
accounts shall be carried in the name of the preneed licensee as trustee, but
accountingAccounting records shall be maintained for each individual
preneed funeral contract purchaser showing the amounts deposited and invested,
and interest, dividends, increases, and accretions earned. Except as provided
in this Article, all interest, dividends, increases, decreases, expenses,
taxes, or accretions earned by the funds shall remain with the principal.trust
account. The trust fund may be charged with applicable taxes and for
reasonable charges paid by the trustee to itself or others for the preparation
of fiduciary tax returns.fees. Penalties charged by a financial
institution for early withdrawals caused by a transfer pursuant to
G.S. 90-210.63 shall be paid by the preneed licensee. Penalties charged as
a result of other early withdrawals as permitted by this Article shall be paid
from the trust fund, and the financial institution shall give the preneed funeral
contract purchaser prompt notice of these penalties."
SECTION 4. This act is effective when it becomes law.