SB 659 - This act provides that an attorney-in-fact under a durable power of attorney that expressly refers to granting the right of sepulcher shall be included in the term "next-of-kin" for purposes of determining who has the right to choose and control the burial, cremation, or other final disposition of a dead human body. The act also removes from the term "next-of-kin" any person designated by the deceased to act as such pursuant to a designation of right of sepulcher, and removes provisions that described the designation of such right.
The act also decreases the amount that may be retained by the seller of any preneed contract sold after August 28, 2007, to cover selling expenses, servicing costs, and overhead from 20 percent of the total amount agreed to be paid to 5 percent of such amount. Additionally, the act provides that all funds above the initial 5 percent shall be placed and held in trust, and that contracts funded by joint accounts shall have held and placed 100 percent of the total amount agreed to be paid by the purchaser, as reflected in the preneed contract.
The act also provides that on all preneed contracts sold after August 28, 2007, the income from any investment of preneed trust property, less losses and expenses, may be distributed to the seller at least annually, but only upon receipt of certification that the provider has provided the final disposition of the dead body, funeral services, facilities and merchandise described in the contract, or has provided alternative funeral benefits pursuant to purchaser arrangement.
The act also provides that all enumerated expenses, including management fees, shall be paid from the income of a preneed trust and not from the principal thereof.