Leonard, 071911 INAGO, AGO 2011-5

Case DateJuly 19, 2011
CourtIndiana
The Honorable Dan J. Leonard
AGO 2011-5
Official Opinion No. 2011-5
Indiana Attorney General Opinion
July 19, 2011
         The Honorable Dan J. Leonard          Indiana House of Representatives          200 W. Washington St.          Indianapolis, IN 46204          RE: Cemetery Perpetual Care Funds          Dear Representative Leonard:          You recently asked whether Cemetery Perpetual Care Funds established under Ind. Code Chpt. 23-14-48 are subject to Ind. Code Chpt. 30-2-12 (“the Uniform Management of Institutional Funds statute.”)          BRIEF ANSWER          The Uniform Management of Institutional Funds statute does not apply to a cemetery perpetual care fund for a cemetery organized and having its first burial after March 6, 1953. It would apply to a perpetual care fund established prior to that date if the fund is not administered by an outside trustee. Regardless of the date of establishment, a cemetery perpetual care fund must comply with the Indiana Uniform Prudent Investor Act (Ind. Code Chpt. 30-4-3.5).          ANALYSIS          The statutory requirements for administration of cemetery perpetual care funds vary depending on the date the fund was established. For a cemetery organized and having its first burial after March 6, 1953, Ind. Code § 23-14-48-4 and Ind. Code § 23-14-48-5 require that the cemetery owner deposit the fund in a financial institution, and designate the financial institution as trustee of the fund. Those trust funds are not subject to the Uniform Management of Institutional Funds statute. The Uniform Management of Institutional Funds statute governs endowments and other charitable funds that are managed by the institution rather than an outside trustee such as a financial institution. Prior to 2007, the statute applied only to college and university endowments, nonprofit endowments valued at ten million dollars or more, and community foundations. Public Law 226-2007 expanded the scope of the statute to include “institutional funds” held by a charitable institution exclusively for charitable purposes. Ind. Code...

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