Minnesota cremation, cemetery fund and prepaid funeral rights

In Minnesota, a crematory must hold its own license to operate a crematory from the commissioner of health, and that license must be displayed where members of the public inside the crematory can read it. A crematory may not cremate a body without written authorization from the person or persons who have the legal right to control the disposition, or that person’s legal designee. The authorization must include directions for the final disposition of the cremated remains and for any noncombustible items recovered. Ask to see the crematory’s license and a copy of the signed authorization. [1][2]

Once a crematory accepts legal and physical custody of a body, the cremation must take place within 24 hours. Cremation is done in privacy, and only authorized crematory staff may be in the cremation area unless the person with the legal right to control the disposition gives written authorization. Without that person’s express written permission, a crematory may not cremate more than one body at the same time in the same cremation chamber. Ask whether family members may be present and what written permission the crematory needs. [3]

If cremated remains are not claimed or disposed of according to the written authorization within 30 calendar days after they are placed in their container, the crematory or funeral establishment must send written notice by certified mail to the person with the legal right to control the final disposition, asking for release directions. If the remains are still unclaimed 120 calendar days after that notice is mailed, they may be disposed of in any lawful manner. Make sure the funeral home has a current mailing address for the person who will collect the remains. [4]

Under Minnesota’s cemetery law, a cemetery association operating a cemetery larger than ten acres must establish a permanent care and improvement fund. Anyone holding money in trust under that section must tell the buyer of a cemetery lot, or of burial space in a mausoleum or columbarium, in writing at the time of the first payment where the money will be held in trust, including the name and address of the institution. That section does not apply to cemeteries, mausoleums or columbariums owned and operated by a municipality, church, religious corporation or religious association. Ask whether the cemetery holds a care fund and where your payment will be kept. [5][6]

Where a cemetery association’s board of trustees has voted to establish a care and improvement fund, 20 percent of the proceeds of all sales of cemetery lots and 10 percent of the proceeds of all sales of burial space in a mausoleum or columbarium made after that vote must be paid to the fund’s trustees on January 1, April 1, July 1 and October 1 each year. Installment payments count as proceeds, and until the amounts are paid over they must be held in trust by the association. Ask what share of your purchase price goes into the care fund. [7]

When someone pays a Minnesota funeral provider in advance for funeral or burial goods or services, the total of all money paid must be held in trust for the purpose for which it was paid. These trust rules do not cover arrangements sold by an insurance company licensed in Minnesota selling approved insurance or annuity products, so a plan funded that way works differently. Money that must be held in trust has to be deposited within 15 calendar days, in a separate account naming the funeral provider and the purchaser as trustees for the person the plan is for. Ask whether your plan is trust-funded or insurance-funded, and where the money is held. [8][11]

A preneed trust is revocable in its entirety unless the purchaser chooses to limit it, and any limit is capped at the Supplemental Security Income asset exclusion used for public assistance eligibility when the trust is created. If you cancel an agreement with a revocable trust, all principal and accrued interest must be paid to you within 15 business days after the funeral provider receives your cancellation notice. If you cancel an agreement with an irrevocable trust before midnight of the third business day after the date of the agreement, you are entitled to a refund of everything paid, within the same 15 business days. Send any cancellation in writing to the address given in the agreement, and keep a copy. [9]

The purchaser keeps the right to choose the trustee and may name a different trustee at any time before the death of the person the plan is for. Every preneed agreement must state that the purchaser may transfer the arrangements and trust funds to pay for goods and services and may not be charged a fee for the transfer, and funeral providers may not charge finance charges on preneed arrangements. The agreement must also give contact details for the Minnesota Department of Health, which regulates preneed trust accounts, and the Attorney General’s Office, which handles consumer complaints. Check that your agreement includes both before you sign. [10]