Prepaid Funeral Trusts and CIP

by Mary Beth Guard and John Burnett
Guru BIOS

Question: Regarding CIP, when establishing an Irrevocable Funeral Agreement Savings Account where the individual does not have use of or access to the funds in the account and the funeral home is the trustee, whom do you identify? The individual or the trustee (funeral home)?

Answer: In this scenario, the funeral home as trustee is the customer. You should identify the trust (perhaps by obtaining a copy of the trust agreement).

The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.

First published on BankersOnline.com 7/25/05