Arizona Laws 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.
Terms Used In Arizona Laws 32-1391.08
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means a person whose future funeral arrangements will be handled by a funeral establishment pursuant to a prearranged funeral agreement. See Arizona Laws 32-1301
- Contract: A legal written agreement that becomes binding when signed.
- Financial institution: means a bank, savings and loan association, trust company or credit union that is lawfully doing business in this state and that is not affiliated with a funeral establishment. See Arizona Laws 32-1301
- Fixed price prearranged funeral agreement funded by trust: means any agreement or combination of agreements that establishes a fixed price for funeral goods and services, that requires a funeral establishment to provide those funeral goods and services at the price levels in effect at the time of the execution of the agreement and that requires the purchaser to convey all or a portion of the accrued interest to the funeral establishment at the time that the funeral goods and services are actually provided. See Arizona Laws 32-1301
- Funeral establishment: means a business at a specific location that is licensed pursuant to this chapter and that is devoted to the care, storage or preparation for final disposition or transportation of dead human bodies. See Arizona Laws 32-1301
- Prearranged funeral agreement: means any agreement or combination of agreements under which a payment is made before the death of the intended beneficiary for funeral goods and services to be delivered or performed after the death of the beneficiary. See Arizona Laws 32-1301
- Trust funds: means all monies that are deposited on behalf of a beneficiary of a prearranged funeral agreement funded by trust and all accrued net interest. See Arizona Laws 32-1301
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.