Do sellers of memorials need to place in trust the funds collected for memorials delivered to the purchaser?
A. In the case of a transaction involving only sale of a memorial and installation service, if a buyer pays immediately or on an installment plan, the seller delivers the memorial to the buyer immediately or within a contractually-stated reasonable time after payment not tied to need or to completion of installment payments, the transaction is not a preneed contract and trusting is not required. In the case of a preneed contract including a memorial, the proper amounts must be placed in trust within thirty (30) days after the end of the calendar month in which the contract is paid in full. If the memorial is delivered to the buyer or “is placed in storage with a responsible third party bonded and insured for the wholesale value thereof and evidenced by a receipt specifically identifying the item, the specific preneed contract, the location of the item, and the identity and address of the bonding and insuring parties.” [ALA CODE §27-17A-44 (b)] before the time for trusting has run, trus
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