SB 1682 FAQ
Frequently Asked Questions for Senate Bill 1682
This information is not intended to serve as legal or financial advice. Please consult with your own attorney or financial advisor concerning advice on how to best comply with any and all statutory changes.
Where can I read the new law?
We anticipate SB 1682 will take effect on January 31, 2010. A Public Act reference number will be assigned once the Governor’s Office certifies the effective date change approved by the Governor and General Assembly this past legislative veto session. The bill makes several changes to the Illinois Funeral or Burial Funds Act (225 ILCS 45) and the Illinois Pre-Need Cemetery Sales Act (815 ILCS 390). A copy of SB1682 is available at the Illinois General Assembly’s website: www.ilga.gov.
How do I transfer my funds to an independent trustee?
First, you must identify a financial institution that is licensed as a corporate fiduciary. to be the independent trustee, you must execute a Trust Agreement and then you can wire or deposit funds into your new Trust account. There may be fees involved.
How do I know the trustee is a corporate fiduciary?
There are a number of ways to determine if your desired independent trustee is a corporate fiduciary. One way to determine this is to visit any of the following websites:
Or, you can simply call the Independent Trustee and confirm.
Do I have to notify the Comptroller’s Office if I’m changing Trustees?
Yes. You must notify the Comptroller if you are changing trustees and/or executing a new trust agreement. Also, you must provide a copy of the fully-executed trust agreement to the Comptroller’s Office.
Can I still use my current local banking institution and have a different Independent Trustee?
If you wish to keep your funds at your current financial institution that is not a corporate fiduciary, you will still need to appoint an Independent Trustee that is a corporate fiduciary. Your current financial institution will simply act as Custodian.
Do I need a Trust Agreement?
Yes.
Do I need to amend my Pre-Need contracts?
Yes. All funeral and cemetery pre-need contracts must conform to current law.
Do I need to deposit $5 for At-Need contracts?
No. The Pre-Need Consumer Protections Funds only apply to pre-need contract sales.
What does the Pre-Need Consumer Protection Fund do?
This state fund may provide restitution to consumers when a funeral home does not provide the goods or services for which the consumer contracted.
What is a Tier 2 audit?
A Tier 2 audit is an additional audit that is performed by an Independent CPA firm to examine the financial situation of a licensee. Tier 2 audits are only performed when the Comptroller deems necessary or advisable to ensure the safety and stability of the trust funds and to ensure compliance with this Act. Tier 2 audits are done at the expense of the licensee.