Section 4.09 - Funeral Trust Accounts(1) All Funeral Trust Accounts shall be established and administered in compliance with the requirements of 239 CMR 4.09.(2)Creation of Funeral Trust Accounts. Where a Pre-need Funeral Contract will be funded through a Funeral Trust Account, the Licensed Funeral Establishment shall deposit all funds made payable to a banking institution received in connection with that Pre-need Funeral Contract in a Funeral Trust Account within five business days after the expiration of the "cooling-off" period described in 239 CMR 4.07(1). Every such Funeral Trust Account shall:(a) Designate a federal or state-chartered banking institution which has trust powers, or a trust company, within the Commonwealth of Massachusetts as the Trustee of said Funeral Trust Account;(b) Designate the person for whom the Funeral Goods and/or Services are to be provided as the Beneficiary of said Funeral Trust Account;(c) Indicate that the funds are to be used solely for the purpose of paying for Funeral Goods and/or Services and Non-funeral Establishment Charges or "Cash Advance Item" Charges as indicated in the Itemized Statement of Funeral Goods and Services required by 239 CMR 4.02(5); and(d) Provide that the entire account balance shall be payable to the Licensed Funeral Establishment which provides the specified Funeral Goods and/or Services to the Beneficiary at time of death in accordance with 239 CMR 4.00.(3)Investment Requirements. The funds placed in a Funeral Trust Account may be invested in any form of investment which may lawfully be established or maintained by the trust department of the banking institution or trust company which is serving as the Trustee of that Funeral Trust Account. All funds deposited in that Funeral Trust Account shall be invested and managed in accordance with M.G.L. c. 203C.(4)Common or Commingled Trust Accounts. Funds made payable to a banking institution received in connection with more than one Pre-need Funeral Contract may be deposited in a single common or commingled Funeral Trust Account under the terms of a single trust instrument, provided that:(a) The common or commingled Funeral Trust Account is established and administered in accordance with all applicable requirements of 239 CMR 4.09; and(b) Separate records, which meet the requirements of 239 CMR 4.12(1)(e), are maintained for each customer whose funds are deposited in the common or commingled Funeral Trust Account.(5)Obligations to Locate Trust Beneficiary. (a) If a Licensed Funeral Establishment which is a party to a Pre-need Funeral Contract does not provide the Funeral Goods and/or Services for the Beneficiary of that contract upon his or her death, then, upon receipt of a certified copy of the death certificate of such Beneficiary, the Trustee of any Funeral Trust Account established to fund said Pre-need Funeral Contract shall pay the assets of said Funeral Trust Account to the estate or legal representative of the named Beneficiary in accordance with the applicable requirements of 239 CMR 4.09.(b) If a Licensed Funeral Establishment has not received notice of the death of the named Beneficiary of a Pre-need Funeral Contract for whom a Funeral Trust Account has been established under 239 CMR 4.09 within 110 years of the Beneficiary's date of birth, said funeral establishment shall take all reasonable steps to contact that Beneficiary or his or her legal representative to inform them of the existence of said Funeral Trust Account. A written notice of the existence of said Funeral Trust Account, sent via certified mail, return receipt requested, to the last known address of the trust Beneficiary and his or her legal representative shall be sufficient to satisfy the requirements of 239 CMR 4.09(5)(b).(c) If, after a reasonable search, a Licensed Funeral Establishment is unable to locate the Beneficiary of said Funeral Trust Account, the funeral establishment shall notify the Trustee of the account, and the Trustee shall turn over all funds in the Funeral Trust Account to the Treasurer of the Commonwealth, in accordance with the laws of the Commonwealth. Any such transfer of funds to the Treasurer of the Commonwealth shall constitute a complete release of all obligations of such Licensed Funeral Establishment pursuant to the Pre-need Funeral Contract.Amended by Mass Register Issue S1331, eff. 1/27/2017.