If I pay for a pre-need burial arrangement, does state law require that the seller hold the money in a trust fund for me until the time comes to provide the burial?
Generally, yes. For pre-need contracts written on or after May 1, 2002, unless the pre-need contract is funded by a life insurance policy, the funds must be placed in trust. The pre-need laws are enforced by the Alabama Department of Insurance. A copy of the law is available at http://www.legislature.state.al.us/CodeOfAlabama/1975/154055.htm. You may also contact the Alabama Department of Insurance at 334-269-3550.
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