North Dakota cemetery care and prepaid-funeral rights

North Dakota’s cemetery organization law covers businesses that own, maintain or operate cemeteries, but not churches, religious or established fraternal societies, charitable associations, or cities and other political subdivisions that run cemeteries. That exemption does not tell you what care such a cemetery provides. Ask any cemetery how it pays for long-term upkeep. [1]

A covered cemetery that operates as a perpetual care cemetery must deposit into its perpetual care fund at least 10% of the gross selling price of each adult space, or $20, whichever is greater, with similar 10% minimums for child spaces, mausoleum crypts, columbarium niches and above-ground interment spaces. Only the fund’s income may be used for care and maintenance, and a perpetual care cemetery must be licensed by the county recorder, or another official the county designates, and renew that license each year by July 1. Ask the county recorder whether the cemetery’s perpetual care license is current. [1]

A covered cemetery that is not a perpetual care cemetery must post a sign reading “This is a nonperpetual care cemetery” where sales take place, print the same legend on its contracts, deeds and advertising, and tell buyers in writing before selling a space. Look for that legend on the contract and ask what care, if any, the cemetery promises. [1]

In North Dakota, only the operator, agent, employee or manager of a licensed funeral establishment or a cemetery association may sell a pre-need funeral service contract. Within ten days, the seller must deposit 100% of the money collected for funeral services and funeral merchandise, but only 50% of the money collected for cemetery merchandise, with a trust company or a federally insured bank, credit union or savings and loan association in the state. Items such as outer burial containers, grave spaces, markers, monuments, crypts and niches generally count as cemetery merchandise rather than funeral merchandise. These deposit rules apply to pre-need contracts other than insurance contracts. Ask which parts of your contract are funeral items and which are cemetery merchandise, and where the money will be deposited. [2]

Before the death of the person the contract covers, the financial institution may release the deposited funds to the person who made the payments at that person’s request, after giving the depositor five days’ written notice by registered or certified mail. A purchaser may instead make part of the money irrevocable for the funeral, and has 45 days after entering an irrevocable itemized funeral contract to cancel the irrevocable part by notifying the funeral establishment or cemetery association. A pre-need contract must be fully transferable to another licensed funeral establishment or cemetery association that agrees to accept its obligations. Check which part of your contract, if any, is irrevocable, and note the 45-day deadline. [2]