2006 Code of Virginia § 54.1-2822 - Deposit of money received pursuant to preneed funeral contract

54.1-2822. Deposit of money received pursuant to preneed funeral contract.

Within thirty days following the receipt of any money paid pursuant to anypreneed funeral contract or interest or income accrued thereon, unless suchamounts are paid to fund either an annuity or an insurance policy which willbe used to purchase the funeral supplies or services contracted for, theperson receiving such amounts shall deposit all consideration paid pursuantto the terms of a preneed funeral contract in which the price of the suppliesand services is not guaranteed, or ninety percent of all consideration paidpursuant to the terms of a preneed funeral contract in which the price of thesupplies and services is guaranteed, in a special account in a bank orsavings institution doing business in this Commonwealth.

The funds shall be deposited in separate, identifiable trust accounts settingforth the names of the depositor, the trustee for the person who is thesubject of the contract, the name of the person who will render the funeralservices and the name of the person who is the subject of the contract. Thepurchaser shall have the right to change the beneficiary and trustee of thetrust at any time prior to the furnishing of the services or suppliescontracted for under the preneed funeral contract. Trust account recordsshall be subject to examination by the Board.

No funeral director, embalmer, funeral service licensee, owner of a funeralestablishment, or any person employed by or having an interest in a funeralestablishment shall serve as trustee of a trust account for which any suchperson, or any funeral establishment owned by or employing such person or inwhich such person has an interest, has been named the beneficiary ordesignated the provider of services, unless two or more such persons arenamed and serve as trustees and are required to act jointly in such fiduciarycapacity.

(1989, c. 684; 1992, c. 337.)