{"data":{"id":"us-ky/krs-367.934","jurisdiction":"us-ky","citation":"KRS 367.934","heading":"Preneed payments and increments as trust funds -- Agents -- Conditions","body":"required for disbursements.\n(1) Except as provided in KRS 367.935:\n(a) 1. All payments of money made to any person, partnership, association, or\ncorporation upon any agree ment or contract, or any series or\ncombination of agreements or contracts, but not including the furnishing\nof cemetery lots or mausoleums, which has for a purpose the furnishing\nor performance of funeral services, or the furnishing or delivery of\npersonal property, merchandise, or services of any nature in connection\nwith the final disposition of a dead human body, for future use at a time\ndeterminable by the death of the person whose body is to be disposed of,\nare held to be trust funds.\n2. The person, pa rtnership, association, or corporation receiving the\npayments:\na. Is declared to be the agent thereof; and\nb. Shall deposit all payments in a trust account with a bank or trust\ncompany or invest the payments in a savings and loan association\nor federally chartered credit union.\n3. The trustee shall be the financial institution holding the funds.\n4. All of the interest, dividends, increases, or accretions of whatever nature\nearned by the funds deposited in a trust account shall remain with the\nprincipal of such account and become a part thereof, subject to all of the\nrequirements concerning the principal of the account herein contained.\n5. a. The agent shall have the authority at any time to transfer or\nredesignate the trustee of the funds in his or her discretion upon\nnotification to the Attorney General.\nb. In case of any transfer, the former trustee shall transfer funds\ndirectly to and payab le to the newly designated trustee or its\nrepresentative;\n(b) All payments made to the agent under the agreement, contract, or plan are and\nshall remain trust funds with the financial institution until the death of the\nperson for whose service the funds we re paid and until the delivery of all\nmerchandise and full performance of all services called for by the agreement,\ncontract, or plan, except where payment is made pursuant to a request for\nrefund; and\n(c) 1. The funds shall not be paid by the financial institution until:\na. A certified statement is furnished to the financial institution by the\nagent setting forth that all of the terms and conditions of the\nagreement have been fully performed by the person, association,\npartnership, firm, or corporation; and\nb. The agent has proven the death of the person for whose service the\nfunds were paid by furnishing the financial institution with a\nverified or certified copy of a record verifying the death, issued by\nthe state registrar of the Vital Statistics Branch or its successor\nagency as authorized by KRS Chapter 213, or a provisional\ncertificate of death as described in KRS 213.076.\n2. Any balance remaining in the fund after payment for the merchandise\nand services as set forth in the agreement, contract, or pla n shall be paid\nto the estate of the beneficiary of the agreement, contract, or plan.\n(2) KRS 367.932 to 367.974 shall not be construed to apply to contracts for funeral\nservice or merchandise sold as preneed and burial insurance policies which are\nregulated by the Department of Insurance of this state.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57554","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:06Z","sha256":"bf3a578fa19a2a41949ad8dfb0a4620ee13b050beeea141033ad98d2c68821c2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.932","next":"us-ky/krs-367.935"},"notice":"GroundRules: Original legal text. Not legal advice."}