A perpetual care trust fund agreement is a legal document that provides for the long-term maintenance of a cemetery or burial ground. The agreement outlines the terms and conditions of the trust fund, which is established by the cemetery owner or operator.
The purpose of a perpetual care trust fund is to ensure that the cemetery remains well-maintained for generations to come. The funds generated from the trust are invested for growth and income, with a portion of the earnings used to cover the costs of maintenance and care of the burial grounds.
In many states, such as California, the establishment of a perpetual care trust fund is required by law. This is to ensure that the cemetery owner or operator has the financial means to fulfill their obligation to maintain the cemetery in perpetuity.
The perpetual care trust fund agreement typically includes provisions for the initial deposit of funds, the management of the trust, the distribution of earnings, and the use of the funds for the care and maintenance of the cemetery.
The initial deposit of funds into the trust is often required to be a sum equal to a specified percentage of the total sales of cemetery lots or interment rights. This initial deposit is then invested, and the earnings are used to fund the ongoing maintenance and care of the cemetery.
The management of the trust is typically overseen by a board of trustees, which may include the cemetery owner or operator, as well as other individuals selected for their expertise in finance and investments. The trustees are responsible for investing the funds to ensure maximum growth and income.
The distribution of earnings from the trust is generally directed to cover the cost of ongoing maintenance and care of the cemetery. This may include expenses such as landscaping, repair of headstones and monuments, and general upkeep of the grounds.
The perpetual care trust fund agreement also includes provisions for the use of the funds in the event that the cemetery is sold or transferred to a new owner. In this case, the funds in the trust must be transferred to the new owner or operator, who must continue to use the funds for the care and maintenance of the cemetery.
In conclusion, a perpetual care trust fund agreement is an important legal document that ensures the long-term care and maintenance of a cemetery or burial ground. The agreement outlines the terms and conditions of the trust, including the initial deposit of funds, the management of the trust, the distribution of earnings, and the use of the funds for the care and maintenance of the cemetery. If you are a cemetery owner or operator, it is essential to establish a perpetual care trust fund to comply with state laws and ensure the continued care of your cemetery.