Why should a cemetery establish a perpetual care trust fund, even if one is not required by law?
The purpose of a perpetual care trust fund is to provide a funding source for long term maintenance of the cemetery. When a cemetery is actively selling lots, some of that income may be used for current maintenance. However, as the cemetery becomes full and lot sales decrease and eventually end, the importance of a source of income for continued maintenance becomes clear. The challenge is to match the perpetual care income stream with the cost of cemetery maintenance in perpetuity.
Related Questions
- May a regulated cemetery use both the income from the trust fund and the corpus of the trust fund to provide perpetual care?
- Why should a cemetery establish a perpetual care trust fund, even if one is not required by law?
- Does Maryland law require regulated cemeteries to have a perpetual care trust fund?
