Executive order establishing the task force (403kb PDF)
Task Force's final report (4.06mb PDF)
Letter to consumers regarding cemetery survey (10kb PDF)
Cemetery survey (8kb PDF)
What the Attorney General Does
The Office of the Attorney General has statutory authority to:
- License sellers of preneed burial contracts and audit funds held in trust.
- Register sellers of cemetery merchandise such as markers and to audit trust funds.
- Register non-exempt cemeteries and to audit funds held in trust for maintenance of the cemeteries.
- Regulate sales of mausoleums made before construction is completed.
- Licenses crematories.
- Bring civil actions against violators and seek civil penalties.
- Criminally prosecute or to refer for prosecution those willfully violating the trust fund laws.
Preneed Burial Contracts
Pre-need funeral services, burial or cemetery merchandise contracts and crematories are subject to the provisions of KRS 367.932-990. Violation of the trust provisions of these statutes is a felony.
Pre-need burial contract sellers must place 100% of all monies paid in a financial institution. These funds remain in the trust until the time of need. In the event the consumer asks for a refund, he or she is entitled to 100% of all monies paid, plus all interest earned within ten days. Requests for refunds must be in writing to the seller and the financial institution. Pre-need burial contracts are registered with the Office of the Attorney General in your name. Pre-need contracts funded through insurance products are exempt from these requirements and are regulated by the Department of Insurance.
Sometimes the seller of pre-need burial contracts is a cemetery. Vaults and openings and closings sold by a funeral home or a cemetery are considered preneed funeral and require 100 percent trusting. The consumer is entitled to a refund of all monies paid and all interest earned within ten days of written request.
Cemetery Merchandise
If you pay for cemetery merchandise, it must be (1) attached to the realty, (2) stored in a bonded warehouse in your name; or (3) 40% of the Moines paid must be held in a cemetery merchandise trust fund in your name. Pre-need cemetery merchandise sales are registered with the Office of the Attorney General in your name.
Cemetery Perpetual Care Funds
Kentucky law requires many cemeteries to maintain a trust fund for the perpetual care and maintenance of the cemetery. Normally, 20% of the proceeds of the sale of a grave space must be placed in trust for this purpose. Cemeteries must be registered with the Office of the Attorney General, unless they meet the qualifications for exemption. The qualifications are:
- Be owned and controlled by lot owners;
- Operate nonprofit;
- Sell no pre-need merchandise and/or services (this does not include grave spaces); and
- Have no salaried employees other than maintenance people.
If cemeteries don't meet those qualifications they are subject to the regulatory authority of the Office of the Attorney General and must follow these laws:
- Nonexempt cemeteries must place 20 percent of the amount paid for a grave space is placed in an irrevocable perpetual care and maintenance trust fund. The income from this trust may only be used for the maintenance and embellishment of the cemetery.
- Nonexempt cemeteries must file annual reports.
- Nonexempt cemeteries are subject to audit by this office.
Crematories & Mausoleums
Crematories are licensed by the Office of the Attorney General. You can now preauthorize your own cremation. At the time of death, however, someone will have to sign off on certain items on your behalf. Someone will need to identify the remains; certify that there are no harmful implants and take responsibility for the cremated remains. However, the crematory may rely on your preauthorization to do the services.
If you purchase a space in a mausoleum before it is constructed, the seller is required to be registered with this office. The seller must also place 36% of all payments in a preconstruction trust fund. Preconstruction sales are also registered with this office in the consumers' name.
Any cemetery company that receives a foundation order shall complete the foundation installation within ninety days without discrimination. Certain "acts of God" shall extend the time of completion by the length of the delay.