1. As used in this section:
a. "Burial trust fund" means a nonguaranteed irrevocable burial trust fund.
b. "Director" means the director of human services.
c. "Next of kin" means the surviving spouse and heirs at law of the deceased.
d. "Personal representative" means personal representative as defined in section 633.3.
2. If funds remain in a nonguaranteed irrevocable burial trust fund after all payments are made in accordance with the conditions and terms of the agreement for funeral merchandise or funeral services, the seller shall comply with all of the following:
a. The seller shall provide written notice by mail to the director in accordance with subsection 3.
b. Following a period of at least sixty days after the mailing of the notice to the director, the seller shall disburse any remaining funds from the burial trust fund as follows:
(1) If within the sixty-day period the seller receives a claim from the personal representative of the deceased, any remaining funds shall be disbursed to the personal representative, notwithstanding any claim by the director.
(2) If within the sixty-day period the seller has not received a claim from the personal representative of the deceased but receives a claim from the director, the seller shall disburse the remaining funds up to the amount of the claim to the director.
(3) Any remaining funds not disposed of pursuant to subparagraphs (1) and (2) shall be disbursed to any person who is identified as the next of kin of the deceased in an affidavit submitted in accordance with subsection 6.
3. The notice mailed to the director shall meet all of the following requirements and is subject to all of the following conditions:
a. The notice shall be mailed with postage prepaid.
b. If the notice is sent by regular mail, the sixty-day period for receipt of a response is deemed to commence three days following the date of mailing.
c. If the notice is sent by certified mail, the sixty-day period for receipt of a response is deemed to commence on the date of mailing.
d. The notice shall provide all of the following information:
(1) The current name, address, and telephone number of the seller.
(2) The full name of the deceased.
(3) The date of the deceased's death.
(4) The amount of the funds remaining in the burial trust fund.
(5) A statement that any claim by the director shall be received by the seller within sixty days of the date of mailing of the notice.
e. A notice in substantially the following form complies with this subsection:
"To: The Director of Human Services
From: (Seller's Name, Current Address, and Telephone Number)
You are hereby notified that (name of deceased), who had an irrevocable burial trust fund, has died, that final payment for funeral merchandise and funeral services has been made, and that (remaining amount) remains in the irrevocable burial trust fund.
The above-named seller must receive a written response regarding any claim by the director within sixty days of the mailing of this notice to the director.
If the above-named seller does not receive a written response regarding a claim by the director within sixty days of the mailing of this notice, the seller may dispose of the remaining funds in accordance with section 523A.3, Code of Iowa."
4. Upon receipt of the seller's written notice, the director shall determine if a debt is due the department of human services pursuant to section 249A.5. If the director determines that a debt is owing, the director shall provide a written response to the seller within sixty days of the mailing of the seller's notice. If the director does not respond with a claim within the sixty-day period, any claim made by the director shall not be enforceable against the seller, the trust, or a trustee.
5. A personal representative who wishes to make a claim shall send written notice of the claim to the seller. If the seller does not receive any claim from a personal representative within the sixty-day period provided for response by the director regarding a claim, the claim of the personal representative shall not be enforceable against the seller, the trust, or a trustee.
6. Any person other than a personal representative or the director claiming an interest in the remaining funds shall submit all of the following in an affidavit claiming an interest:
a. The full name, current address, and telephone number of the claimant.
b. The claimant's relationship to the deceased.
c. The name of any surviving next of kin of the deceased, and the relationship of any named surviving next of kin.
d. That the claimant has no knowledge of the existence of a personal representative for the deceased's estate.
7. The seller may retain not more than fifty dollars of the remaining funds in the burial trust fund for the administrative expenses associated with the requirements of this section.
8. If the funds remaining in a burial trust fund are disbursed in accordance with the requirements of this section, the seller, the burial trust fund, and any trustee shall not be liable to the director, the estate of the deceased, any personal representative, or any other interested person for the remaining funds and any lien imposed by the director shall be unenforceable against the seller, the burial trust fund, or any trustee.
96 Acts, ch 1093, §2
Referred to in § 523A.8, 523E.8
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