(1) Upon transfer of the account by the appointment of a successor trustee;

(2) Upon revocation of the agreement if the agreement is revokable; and

(3) For the actual financial and tax administration of the account.

The payee shall maintain a complete record of the deposit of all funds, including principal and interest. The record must be available for inspection by the payor, the payor's legal representative, the commissioner's designee or an inspector for the board and must contain the name and address of the financial institution or credit union currently in possession of the funds and the dates and amounts of deposits.

E. The funds may be withdrawn directed by the payee to another financial institution or credit union or directed back to the payor or the payor's legal representative, if otherwise lawful and permitted by contract, by the payee on written instructions of the payor or the payor's legal representative or. The funds may only be withdrawn by the payee on the presentation of proof of death of the person for whose benefit the funds were paid, in which event they must be used in accordance with the agreement.

Sec. 2. 32 MRSA §1401, sub-§3, as enacted by PL 1999, c. 258, §2 and affected by §3, is amended to read:

3. Financial institution or credit union liability. The financial institution or credit union is discharged from liability for direct payment of the funds in an account under subsection 1 to another financial institution or credit union or to the payee, upon presentation of a written consent to withdrawal signed by the payor or the payor's legal representative and by the payee or upon withdrawal of the funds by the payee upon presentation of proof of death of the person for whose benefit the funds were paid.

SUMMARY

This bill amends the laws governing mortuary trust funds as follows.