523A.303  Disbursement of remaining funds.
  1.  If funds remain in a nonguaranteed irrevocable burial trust fund or from the proceeds of an insurance policy or annuity made payable or assigned to the seller or a provider after the payment of funeral and burial expenses in accordance with the conditions and terms of the purchase agreement for cemetery merchandise, 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 under subsection 2.
  b.  At least sixty days after mailing 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 5.
  2.  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)  Current name, address, and telephone number of the seller.
  (2)  Full name of the deceased.
  (3)  Date of the deceased’s death.
  (4)  Amount of funds remaining in the burial trust fund.
  (5)  Statement that any claim by the director must be received by the seller within sixty days after 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 cemetery merchandise, 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 after 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 after the mailing of this notice, the seller may dispose of the remaining funds in accordance with section 523A.303, Code of Iowa.
  3.  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.53. If the director determines that a debt is owing, the director shall provide a written response to the seller within sixty days after 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.
  4.  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.
  5.  Any person other than a personal representative or the director claiming an interest in the remaining funds shall submit an affidavit claiming an interest which provides the following information:
  a.  Full name, current address, and telephone number of the claimant.
  b.  Claimant’s relationship to the deceased.
  c.  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.
  6.  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.
  7.  If the funds remaining in a burial trust fund are disbursed under the requirements of this section, the seller, the provider, 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.
2001 Acts, ch 118, §27
Referred to in §523A.301