Bill > SB305

This bill revises Montana's funeral trust laws by modifying the requirements for how funeral service providers must handle funds received for prearranged funerals or related services. Currently, providers must deposit these funds within 10 business days into a banking institution, savings and loan association, or credit union that maintains an office in the state. The key change is replacing the previous requirement that these deposits be insured by a federal government instrumentality with a mandate to comply with the "prudent investor rule" from Title 72, chapter 38, part 9 of Montana law. The prudent investor rule is a legal standard that requires trustees to manage investment funds with the care, skill, and caution that a prudent investor would use when making investment decisions, considering the purposes, terms, and other circumstances of the trust. The bill explicitly states that this prudent investor rule cannot be waived, and it reaffirms that these deposited funds constitute a trust fund for the benefit of the person who contracted for the prearranged funeral services, to be held in a separate account with the depositor acting as trustee.

Business and Industry

https://bills.legmt.gov/#/laws/bill/2/LC0194