214.330. Endowed care fund held in trust or segregated account--requirements--duties of trustee or independent investment advisor--operator's duties--endowed care fund agreement.
Endowed care fund held in trust or segregatedaccount--requirements--duties of trustee or independentinvestment advisor--operator's duties--endowed care fundagreement.
214.330. 1. The endowed care fund required by sections 214.270 to214.410 shall be permanently set aside in trust or in accordance with theprovisions of subsection 2 of this section. The trustee of the endowedcare trust shall be a state- or federally chartered financial institutionauthorized to exercise trust powers in Missouri and located in this state.The income from the endowed care fund shall be distributed to the cemeteryoperator at least annually or in other convenient installments. Thecemetery operator shall have the duty and responsibility to apply theincome to provide care and maintenance only for that part of the cemeteryin which burial space shall have been sold and with respect to which salesthe endowed care fund shall have been established and not for any otherpurpose. The principal of such funds shall be kept intact andappropriately invested by the trustee, or the independent investmentadvisor. An endowed care trust agreement may provide that when theprincipal in an endowed care trust exceeds two hundred fifty thousanddollars, investment decisions regarding the principal and undistributedincome may be made by a federally registered or Missouri-registeredindependent qualified investment advisor designated by the cemetery owner,relieving the trustee of all liability regarding investment decisions madeby such qualified investment advisor. It shall be the duty of the trustee,or the investment advisor, in the investment of such funds to exercise thediligence and care men of ordinary prudence, intelligence and discretionwould employ, but with a view to permanency of investment consideringprobable safety of capital investment, income produced and appreciation ofcapital investment. The trustee's duties shall be the maintenance ofrecords and the accounting for and investment of moneys deposited by theoperator to the endowed care fund. For the purposes of sections 214.270 to214.410, the trustee or investment advisor shall not be deemed to beresponsible for the care, the maintenance, or the operation of thecemetery, or for any other matter relating to the cemetery, including, butnot limited to, compliance with environmental laws and regulations. Withrespect to cemetery property maintained by cemetery care funds, thecemetery operator shall be responsible for the performance of the care andmaintenance of the cemetery property owned by the cemetery operator and forthe opening and closing of all graves, crypts, or niches for human remainsin any cemetery property owned by the cemetery operator.
2. If the endowed care cemetery fund is not permanently set aside ina trust fund as required by subsection 1 of this section then the fundsshall be permanently set aside in a segregated bank account which requiresthe signature of the cemetery owner and either the administrator of theoffice of endowed care cemeteries, or the signature of a licensedpracticing attorney with escrow powers in this state as joint signatoriesfor any distribution from the trust fund. No funds shall be expendedwithout the signature of either the administrator of the office of endowedcare cemeteries, or a licensed practicing attorney with escrow powers inthis state. The account shall be insured by the Federal Deposit InsuranceCorporation or comparable deposit insurance and held in the state- orfederally chartered financial institution authorized to do business inMissouri and located in this state. The income from the endowed care fundshall be distributed to the cemetery operator at least in annual orsemiannual installments. The cemetery operator shall have the duty andresponsibility to apply the income to provide care and maintenance only forthat part of the cemetery in which burial space shall have been sold andwith respect to which sales the endowed care fund shall have beenestablished and not for any other purpose. The principal of such fundsshall be kept intact and appropriately invested by the cemetery operatorwith written approval of either the administrator of the office of endowedcare cemeteries or a licensed practicing attorney with escrow powers inthis state. It shall be the duty of the cemetery owner in the investmentof such funds to exercise the diligence and care a person of reasonableprudence, intelligence and discretion would employ, but with a view topermanency of investment considering probable safety of capital investment,income produced and appreciation of capital investment. The cemeteryowner's duties shall be the maintenance of records and the accounting foran investment of moneys deposited by the operator to the endowed care fund.For purposes of sections 214.270 to 214.410, the administrator of theoffice of endowed care cemeteries or the licensed practicing attorney withescrow powers in this state shall not be deemed to be responsible for thecare, maintenance, or operation of the cemetery. With respect to cemeteryproperty maintained by cemetery care funds, the cemetery operator shall beresponsible for the performance of the care and maintenance of the cemeteryproperty owned by the cemetery operator and for the opening and closing ofall graves, crypts, or niches for human remains in any cemetery propertyowned by the cemetery operator.
3. The cemetery operator shall be accountable to the owners of burialspace in the cemetery for compliance with sections 214.270 to 214.410.
4. All endowed care funds shall be administered in accordance with anendowed care fund agreement. The endowed care fund agreement shall besubject to review and approval by the office of endowed care cemeteries orby a licensed practicing attorney with escrow powers in this state. Theendowed care cemetery shall be notified in writing by the office of endowedcare cemeteries or by a licensed practicing attorney with escrow powers inthis state regarding the approval or disapproval of the endowed care fundagreement and regarding any changes required to be made for compliance withthis chapter and the rules and regulations promulgated thereunder. A copyof the proposed endowed care fund agreement shall be submitted to theoffice of endowed care cemeteries. The office of endowed care cemeteriesor a licensed practicing attorney with escrow powers in this state shallnotify the endowed care cemetery in writing of approval and of any requiredchange. Any amendment or change to the endowed care fund agreement shallbe submitted to the office of endowed care cemeteries or to a licensedpracticing attorney with escrow powers in this state for review andapproval. Said amendment or change shall not be effective until approvedby the office of endowed care cemeteries or by a licensed practicingattorney with escrow powers in this state. All endowed care cemeteriesshall be under a continuing duty to file with the office of endowed carecemeteries or with a licensed practicing attorney with escrow powers inthis state and to submit for approval any and all changes, amendment, orrevisions of the endowed care fund agreement.
5. No principal shall be distributed from an endowed care trust fundexcept to the extent that a unitrust election is in effect with respect tosuch trust under the provisions of section 469.411, RSMo.
(L. 1961 p. 538 § 8, A.L. 1990 H.B. 1079, A.L. 1994 S.B. 496 merged with S.B. 701, A.L. 1999 H.B. 343, A.L. 2002 H.B. 1537, A.L. 2009 S.B. 296)