Hawaii cemetery care and prepaid funeral rights

Hawaii law says any cemetery “hereafter established” must be a perpetual care cemetery, and an existing cemetery may not be operated, advertised or represented as one unless it complies with the cemetery law. A cemetery authority operating a perpetual care cemetery must establish a perpetual care fund. For each plot, niche or mausoleum crypt sold, it must transfer to the trustee the amount stated in the contract or deed for perpetual care, but not less than $1 per square foot of interment space, $50 per mausoleum crypt or $15 per niche, within 30 days after the final payment. Ask how much of your price will go to the perpetual care fund. [1][2]

After a valid written contract for cemetery property, interment services, funeral services or related goods has been signed, the seller may not charge further fees for perpetual care beyond those agreed in the contract, except a reasonable fee for the administrative costs of transferring ownership rights. Check the perpetual care terms in your contract. [3]

Some cemeteries are outside these rules. The director of Commerce and Consumer Affairs must exempt a cemetery authority that proves it does not sell for financial profit, but may order it to comply with any provision. A church granted an exemption is exempt from all requirements of the chapter. Owners of residential or agricultural land who use it to bury family members are exempt, provided the plots are offered to family members only and are not sold separately from the property. An exemption does not tell you what care a cemetery promises, so ask for its care terms in writing. [4][5]

A cemetery or pre-need funeral authority must give the buyer a written contract. Among other things, it must itemize the property, services and goods to be supplied or not supplied, show the price of each item and how the total is payable, name the trustee, and state the percentage of the price of trustable items to be placed in trust, which must be at least 70%, and the percentage the seller keeps, which may not be more than 30%. It must also carry a bold-type statement that you have refund, cancellation and default rights under state law and under the contract. Ask for these disclosures before you sign. [6]

The seller may first recover its acquisition costs, which are the lesser of 30% of the contract price or the difference between the contract price and the cost of the services contracted for. All payments received after those costs are recovered must be transferred to the trust within 30 days of receipt. On an instalment plan, this means early payments can go to the seller’s costs before any money reaches the trust. Ask how your payment schedule affects the amount held in trust. [2]

At any time before the pre-need funeral or interment services are received, the purchaser may cancel the contract by written notice to the cemetery or pre-need funeral authority. When a contract is cancelled or terminated, the purchaser is entitled to a refund of the amounts paid, less the costs the seller may keep under section 441-38(b), within 30 days of the written notice or the termination. Ask for a written estimate of that refund. [7]

Before ending a contract for late payment, the seller must send written notice four months ahead showing the amount owed and how to continue the contract, and repeat that notice at least monthly during the four months. To continue, the buyer cannot be required to pay more than one installment payment. If the buyer falls behind again after that period, the seller may terminate on at least 90 days’ written notice. Ask how missed payments are handled before you choose an instalment plan. [7]

A mortuary, cemetery or pre-need funeral authority may not charge more than the price on the itemized price list or contract the purchaser signed, unless the purchaser asks for an additional item and approves its disclosed price. Keep a signed copy of the price list or contract. [6]