Indiana § 23-14-48-2.6 - Conversion of perpetual care fund into total return unitrust

§ 23-14-48-2.6. Conversion of perpetual care fund into total return unitrust

Sec. 2.6. (a) If a perpetual care fund established under this chapter is a trust, the trust may be converted into a total return unitrust under IC 30-2-15.

(b) Withdrawals may be made from a trust converted into a total return unitrust as provided in:

(1) the governing trust instrument of the trust; and

(2) IC 30-2-15.

(c) Except for withdrawals for the payment of expenses as allowed by:

(1) the governing trust instrument of the trust; and

(2) IC 30-2-15;

all withdrawals from a trust converted into a total return unitrust shall be devoted to the perpetual care of the cemetery, including the immediate maintenance needs of the cemetery.

(d) This subsection applies to a unitrust distribution made in any given year. Before making a unitrust distribution, the trustee must do the following:

(1) Evaluate the change that a unitrust distribution will make to the trust's principal over time.

(2) Ensure that the current market value of the trust at the time of the trustee's evaluation is greater than the sum of the following amounts:

(A) Eighty percent (80%) of the trust's principal amount at the time of the trust's conversion to a unitrust.

(B) Any required contributions made to the trust after the trust's conversion to a unitrust.

If the current market value of the trust is less than the amount required by this subsection, any distribution made from the trust shall be consistent with section 2 of this chapter.

As added by P.L.33-2019, SEC.3.