BILL NUMBER: S9468
SPONSOR: FAHY
 
TITLE OF BILL:
An act to amend the not-for-profit corporation law, in relation to the
administration of dormant lot-specific cemetery trusts
 
PURPOSE:
To allow cemetery corporations in New York State to assume custodianship
of dormant lot-specific cemetery trusts when no trustee, heir, or
responsible party has been identified for an extended period of time.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new section 1507-b to the not-for-profit corporation
law establishing procedures for the administration of dormant lot-spe-
cific cemetery trusts.
Section 2 provides the effective date.
 
JUSTIFICATION:
Many cemetery lots in New York State have been historically established
with lot-specific trusts intended to fund the maintenance, care, and
preservation of a particular burial plot. Over time, however, some of
these trusts have become dormant because the original trustee has passed
away, no successor trustee was designated, and no heirs or other inter-
ested parties have come forward to provide direction regarding the
trust. Under current law, there is no clear administrative mechanism for
cemeteries to manage these dormant trusts. As a result, funds intended
for the care and preservation of cemetery lots have remained unused or
difficult to administer to ensure the ongoing maintenance of the lot.
This legislation addresses this gap by allowing cemetery corporations to
voluntarily assume custodianship of dormant lot-specific trusts when no
trustee, successor, or identifiable interested party has exercised
authority over the trust for a period of thirty years. The legislation
requires funds to remain restricted assets and may not be diverted to
general cemetery operations. The cemetery must maintain separate
accounting for each trust and administer the funds according to the
original intent of the trust instrument. Additionally, the bill protects
the rights of heirs, descendants, or other interested persons, who may
come forward at any time to assert their interest and provide direction
for the trust.
By allowing cemetery corporations to administer these dormant trusts,
this bill ensures that funds originally set aside for the maintenance
and preservation of burial lots can continue to be used for their
intended purpose.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.