{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-7103","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-7103","heading":"Perpetual Care Fund - Deposits into fund - Investments -","body":"Distribution methods\n\nA. In all cemeteries in this state where burial spaces are\n\nsold, not less than ten percent (10%) of the purchase price thereof\n\nshall be segregated and set aside as a permanent trust fund to be\n\nknown as the \"Perpetual Care Fund\". The Perpetual Care Fund shall\n\nbe invested as hereinafter prescribed, and the income only shall be\n\nused in improving, caring for, and embellishing the lots, walks,\n\ndrives, parks and other improvements in the cemeteries and\n\nmaintenance of office and care of records.\n\nB. If a cemetery allows a person or other entity to construct\n\nor otherwise establish a burial space at the cemetery that is not\n\npurchased from the cemetery, the cemetery shall collect from the\n\nperson or entity an amount not less than ten percent (10%) of the\n\nconstruction or retail cost of the burial space, to be deposited in\n\nthe Perpetual Care Fund of the cemetery.\n\nC. The owner or designated agent of a cemetery shall set aside\n\nand deposit the amounts required in subsections A and B of this\n\nsection in a financial institution authorized by law, as trustee, to\n\nadminister the trusts, not later than thirty (30) days after the\n\nclose of the month in which was received the final payment on the\n\npurchase price of each burial space. The amounts shall be held by\n\nthe trustee of the Perpetual Care Fund in trust for the specific\n\npurposes stated in a written trust agreement. The trust agreement\n\nmay provide for an individual or other entity to exist as cotrustee;\n\nprovided, however, in no instance shall the cotrustee have sole\n\naccess to deposits held in the Perpetual Care Fund, except as\n\notherwise provided in this act.\n\nD. Notwithstanding the requirements of subsection C of this\n\nsection, if the total amount of the Perpetual Care Fund maintained\n\nby the cemetery is an amount equal to or less than the standard\n\ninsurance amount per depositor as provided by the Federal Deposit\n\nInsurance Corporation, the cemetery may, in lieu of depositing the\n\nfunds in a trust account, purchase a certificate of deposit from a\n\nfinancial institution according to the terms of this subsection.\n\nThe certificate of deposit shall be pledged in favor of the Oklahoma\n\nInsurance Department with no right of withdrawal by the cemetery,\n\nwhether before or after maturity, except upon application to, and\n\napproval by, the Insurance Commissioner. The terms of the\n\ncertificate of deposit shall provide for notice to the Insurance\n\nDepartment within thirty (30) days prior to maturity. Only interest\n\naccruing from the certificate of deposit may be withdrawn by the\n\ncemetery and shall be considered income for purposes of subsection A\n\nof this section. If a cemetery maintains a certificate of deposit\n\nin lieu of a trust fund, as it collects funds which are required to\n\nbe deposited into its Perpetual Care Fund, it shall segregate those\n\nfunds from its other operating funds and contribute those funds to\n\nthe certificate of deposit upon its next maturity date. If a\n\nPerpetual Care Fund of a cemetery is maintained in a certificate of\n\ndeposit, but grows in an amount greater than the standard insurance\n\namount per depositor as provided by the Federal Deposit Insurance\n\nCorporation, the cemetery shall comply with the provisions of\n\nsubsection C of this section by placing all of its Perpetual Care\n\nFund in trust and shall no longer maintain a certificate of deposit\n\nas authorized by this subsection.\n\nE. A cemetery regulated under this section may choose\n\ndistribution from the perpetual care fund in the form of either all\n\nnet ordinary income or an amount, not to be reduced by taxes or\n\nfees, not exceeding five percent (5%) of the average fair market\n\nvalue of the trust funds.\n\n1. A cemetery may select a distribution method by delivering\n\nwritten instructions to the trustee of the fund no later than thirty\ny regulated under this section may choose\n\ndistribution from the perpetual care fund in the form of either all\n\nnet ordinary income or an amount, not to be reduced by taxes or\n\nfees, not exceeding five percent (5%) of the average fair market\n\nvalue of the trust funds.\n\n1. A cemetery may select a distribution method by delivering\n\nwritten instructions to the trustee of the fund no later than thirty\n\n(30) days prior to the beginning of the calendar year. Such\n\nnotification shall also be provided to the Insurance Commissioner.\n\nThe distribution method and distribution rate selected shall remain\n\nin effect unless the cemetery notifies the trustee and the Insurance\n\nCommissioner of its desire to effect a change.\n\n2. Disbursements from the trust shall be made on a monthly,\n\nquarterly, semi-annual or annual basis, as agreed upon by the\n\ncemetery and the trustee.\n\n3. In the event that the trustee does not receive written\n\ninstructions from the cemetery informing the trustee of the method\n\nof calculation chosen, then the trustee shall calculate and disburse\n\nthe net ordinary income, as earned, on a monthly basis.\n\n4. If the cemetery company selects a distribution based on the\n\naverage fair market value calculation, the trustees must ensure that\n\nan investment policy is in place whose goals and objectives are\n\nsupportive of the growth of the care and maintenance fund. In order\n\nto withdraw up to five percent (5%) of trust funds, the current\n\nmarket value of the trust after the withdrawal shall be greater than\n\nthe aggregate of eighty percent (80%) of the market value of the\n\ntrust as of the preceding calendar year, plus the total\n\ncontributions made to trust principal from such date to the date\n\nthat the method of calculation is selected. If this is not the\n\ncase, distributions will be limited for that year to the net\n\nordinary income.\n\n5. The Insurance Commissioner may limit or prohibit the\n\ndistribution based on average fair market value calculation in\n\nsituations where investment returns and distribution practices have\n\nnot resulted in sufficient protection of the care fund's trust\n\nprincipal from a three to five year analysis, or where the trustee\n\nand any investment manager are not able to demonstrate sufficient\n\nknowledge and expertise regarding the effective implementation of\n\ndistributing income for the maintenance of the cemetery using this\n\nmethod.\n\nF. Without regard to the withdrawal method selected pursuant to\n\nsubsection E of this section, capital gains taxes shall be paid from\n\nthe trust principal.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3a94e551a99612e6bbc54dcea54eca9ab27bad4ec358e4a9845b956f88d387aa","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-7102","next":"us-ok/okla.-stat.-tit.-36-36-7104"},"notice":"GroundRules: Original legal text. Not legal advice."}