TERMS AND CONDITIONS
This Trust Agreement is subject to the master "Funeral Service" Trust Agreement establishing the Trustee relationship. Purchaser may review that master Trust Agreement upon request to Funeral Home which has a copy on file. Purchaser acknowledges that it has been made available and agrees that the terms of that master Trust Agreement provide how money paid under this Agreement will be deposited, held and paid out.
- FUNDING. Under Pennsylvania Law, all Payments made by Purchaser hereunder will be deposited in the Trust Account forthwith after receipt by Funeral Home. All funds received by Funeral Home from Purchaser and deposited in the Trust Account will be invested under Pennsylvania Law. Purchaser acknowledges that the Trust Funds may be commingled with other funds held under Pre-Need Agreements similar in form and substance to this Agreement. The Trust Account shall be maintained by Trustees who with the Funeral Home may appoint an investment advisor to perform certain administrative, and advisory duties. Trustees and Investment Advisor are entitled to compensation as set forth in Funeral Services Agreement, Articles 1.7 & 2.4 and reimbursement for all expenses incurred by them in performing their duties. Such compensation and reimbursement shall be payable from the Trust Funds. Currently such fees are 1.0% per annum of the trust account. In no event shall these fees exceed 1.25% per annum of the trust account.
- DEFAULT. If the Purchaser fails to make any installment payment hereunder within fifteen (15) days of its due date, Funeral Home may end this Agreement without notice to Purchaser. Failure by Funeral Home to end this Agreement as a result of acceptance of one or more late payments shall not be deemed a waiver by Funeral Home of its right to end this Agreement in the event of a subsequent payment default.
- CANCELLATION. If this Agreement is cancelled by Funeral Home as a result of (i) failure of Purchaser to make the payment specified therein when due or (ii) failure by Purchaser or the person responsible for making funeral arrangements for Beneficiary to request the services and merchandise provided herein, Funeral Home shall pay to Purchaser, the total purchase price paid to date less any proper charges or expenses imposed by the trust into which the funds were deposited. All income earned or any increase in value of the Trust Account shall belong to the Funeral Home.
AN IRREVOCABLE AGREEMENT MAY NOT BE MODIFIED, AMENDED OR TERMINATED, AND THE TRUST FUNDS HELD PURSUANT TO AN IRREVOCABLE AGREEMENT MAY ONLY BE RELEASED UPON DEATH OF BENEFICIARY.
Funds held for an irrevocable agreement may be transferred to another funeral service establishment upon written notification from Purchaser or his Representative to Funeral Home. This would be handled in the same manner as a cancellation except the check would be issued to the new funeral service establishment.
- PRICE AND SERVICES GUARANTEE. This is a Guaranteed Agreement, with certain cash advance items not guaranteed. Funeral Home shall provide the funeral services and deliver the merchandise set forth and indicated and guaranteed on Schedule A (received with your confirmation of trust contribution) regardless of the actual price at the time of furnishing such services and merchandise. (This does not apply to those products and services indicated as non-guaranteed.) Funeral Home may not seek additional payment from Purchaser, Beneficiary or their respective heirs or personal representatives in the event that the Trust Funds are less than actual costs incurred by Funeral Home in performing its obligations under a Guaranteed Agreement; provided, however, that if Schedule A provides for payments from additional sources, Purchaser shall be liable to Funeral Home for such amounts.
- OPEN PRICE AND SERVICE. If this Agreement is not a Guaranteed Agreement, Funeral Home shall provide the funeral services and deliver the merchandise as set forth on Schedule A (or such other services or merchandise as selected by the family of the Beneficiary) at the then prevailing prices for such services and merchandise and shall credit the Trust Funds against the cost of providing such services and merchandise. Purchaser shall be liable for additional expenses, if any, incurred by Funeral Home in providing such services and merchandise. Funeral Home shall consult with Purchaser or Representative prior to incurring costs in excess of the Trust Funds.
- EXCESS TRUST FUNDS. If this agreement is guaranteed, in the event Funeral Home’s actual costs of providing the funeral services and merchandise set forth on Schedule A are less than the Trust Funds, Funeral Home shall be entitled to amounts remaining in the Trust Account after provision for such funeral services and merchandise. If this Agreement is not Guaranteed, amounts remaining in the Trust Account after provision for such funeral services and merchandise shall be refunded to Purchaser (if different than Beneficiary) or to the estate of the Beneficiary. In such event, the amount refunded may be subject to claims of The Commonwealth or The United States.
- SUBSTITUTION OF MERCHANDISE. If the merchandise enumerated in Schedule A is not reasonably available at the time of the Beneficiary’s death, Funeral Home will, in accordance with its professional judgment, substitute merchandise of equal or superior quality and workmanship to that designated in Schedule A.
- CHANGE OF BENEFICIARY. Purchaser may change the Beneficiary designated herein by written notice to Funeral Home only if this Agreement is a Revocable Agreement. If this Agreement is an Irrevocable Agreement, Purchaser cannot change the beneficiary named herein.
- INCOME TAX. Income earned on the Trust Funds shall be subject to federal income taxation. Each Purchaser shall be responsible for payment of taxes on the income earned on the Trust Funds. In the case of an Irrevocable Agreement, the investment advisor shall be responsible for applying for a tax identification number, and annually shall file a 1041 or similar IRS form. Purchaser shall receive an IRS informational form K1 providing information to be included on his or her tax return. In the case of a Revocable Agreement Purchaser shall receive an IRS 1099 statement of interest earned, for Purchaser to include in his or her tax return.
- LIABILITY OF TRUSTEES AND INVESTMENT ADVISOR. The Purchaser, for himself, the Beneficiary and their respective heirs and personal representatives, agrees that no claim or demand of any kind or nature shall be made upon or asserted against any Trustee or investment advisor appointed to maintain and administer the Trust Account resulting from or arising out of, directly or indirectly, any act or failure of the Trustees or investment advisor to act or caused by the Trustees or investment advisor’s reliance on any affidavit, certificate, or statement delivered to the Trustees or investment advisor or any disbursement by the Trustees or investment advisor from the Trust Account. However, that nothing herein shall be deemed to waive the rights of a Purchaser or Beneficiary in the event of the gross negligence or willful misconduct of the Trustees or investment advisor, or any rights of such Purchaser or Beneficiary pursuant to any applicable law provided further, that the Trustee's sole obligations and liabilities shall be only those specified in the Funeral Trust Agreement among the Funeral Director, Investment Advisor and Trustee.
- CHANGE OF ADDRESS. Purchaser shall promptly notify the Funeral Home of any change of the Purchaser’s or the Beneficiary’s address.
- NOTICES. All notices shall be in writing and shall be deemed to have been made if delivered in person or by mail, first class, postage prepaid, at the address listed herein or to such other address as any person may subsequently designate in writing, and deliver to the other party.
- SEVERABILITY. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement, or the application or such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
- FISCAL YEAR. The fiscal year of the Trust Account shall end on December 31.
- LAW. This Agreement is made in the Commonwealth of Pennsylvania and shall be construed in accordance with its laws and regulations.
"Beneficiary" means the individual for whom pre-arrangements are made.
"Trust Account" means the Trust Account established under to this Agreement.
"Trustee" means that institution designated as Trustee in Section E on the reverse side of this Agreement and any successor thereto, whether by partial or total sale to or acquisition by another institution or entity, merger survival, change of name or the like, all of which successions are hereby consented to by the parties to this Agreement.
"Trust Funds" means the total of the Purchase Price and all income earned thereon pursuant to this Agreement, less fees and expenses of the Trustees and investment advisor.
"Funeral Home" means party named in this Agreement as Funeral Home and who must be duly licensed in the Commonwealth of Pennsylvania and who provides funeral merchandise and services.
"Guaranteed Agreement" means this Agreement if Purchaser has designated that clause (i) if Paragraph D applies.
"Irrevocable Agreement" means this Agreement if (1) Purchaser designated that such Agreement is irrevocable pursuant to clause (i) of Paragraph F, (2) the Purchase Price has been paid in full and (3) the Waiting Period has expired.
"Purchaser" means the person designated in Paragraph A, including, upon death of Purchaser, the Representatives of such person.
"Purchase Price" means the price specified in Paragraph C.
"Representative" means a family member, Next-of-Kin or legal representative of a Purchaser or Beneficiary, as the context requires.
"Revocable Agreement" means this Agreement if Purchaser designated that such Agreement is revocable pursuant to clause (ii) of Paragraph F.
"Schedule A" means statement of funeral services and merchandise.
"Waiting Period" means the period ending on midnight of the tenth full day following the date of this Agreement.