Preneed Services: Trust and Bond Requirements
Every cemetery company offering property, goods or services as a part of a preneed cemetery company contract when the anticipated delivery of such services will be delayed by more than 120 days is required to deposit 40% of the proceeds of such contract into an interest bearing trust fund. If the trustee is someone other than a bank, savings and loan or other federally insured investment banking institution, the trustee shall be approved by the Tax Commissioner and must furnish a surety bond equal to 100% of the value of the trust estate (but not less than $100,000.00) along with a
CEM-B form to the Tax Commissioner.
Preneed Services: Annual Report
A cemetery company is required to file an annual report with the Tax Commissioner within four months following the close of the company’s fiscal year containing information about the trust. Such report shall be filed on a form
CEM-4. A separate report must be completed for each trust account.