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S 9468

Relates to disclosure of amounts in trust for the perpetual care of cemetery lots

2025 Regular Session Introduced by Pat Fahy

Requires trustees handling cemetery perpetual care funds to disclose balances to designated cemetery associations at least biennially, with initial and ongoing reporting.

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Bill Summary · S 9468

Summary of Bill S. 9468-A (2025-2026) — New York

Purpose and Intent

  • Creates a requirement for periodic disclosure of balances in trusts established for the perpetual care of cemetery lots. The aim is to increase transparency around funds set aside for cemetery maintenance and related expenditures.

Key Provisions and Changes

  • Not-for-Profit Corporation Law (amendment to §1507, paragraph (b))

    • Adds a new subparagraph (4).
    • Requirement: When there are executors, trustees, or both, who hold funds bequeathed for the perpetual care of cemetery lots, these fiduciaries must disclose, at least biennially, the balance of such trust funds to the cemetery association designated for the trust.
    • This biennial disclosure continues until a surrogate’s court (with jurisdiction over the trust) approves a related agreement under an existing provision (subparagraph three of the same paragraph).

  • Estates, Powers and Trusts Law (amendment to §8-1.5, renumbered)

    • Clarifies and reinforces the treatment of trusts established for cemetery purposes (perpetual care, maintenance, improvements, etc.).
    • Defines these dispositions as charitable and benevolent, and not invalid due to indefiniteness or uncertainty of beneficiaries or perpetuity concerns.
    • Allows the court to determine the reasonableness of the amount of such dispositions.
    • Disclosure obligation:
    • All such dispositions must be disclosed to a designated cemetery association within sixty days of their establishment.
    • For existing dispositions not held or administered by a cemetery association (made before December 31, 2026), disclosures must be made to the designated cemetery association by December 31, 2027.
    • Authority and administration:
    • A cemetery association may act as trustee for such funds (for lots within its cemetery or outside but within the same county, and even if not explicitly listed in its corporate powers).
    • Trustees that are not cemetery associations must disclose, at least biennially, the balance of funds in the trust to the cemetery association for which the trust is dedicated.
    • Timing for initial disclosures:
    • Initial biennial disclosures by trustees or executors must begin within one year of the effective date of the 2026 amendment.

  • Effective Date

    • The act takes effect immediately upon enactment.

Who Would Be Affected

  • Executors and trustees holding funds or trusts dedicated to the perpetual care of cemetery lots.
  • Cemetery associations designated to receive disclosures and/or to act as trustees.
  • Trustees that are not cemetery associations (in terms of reporting to the designated cemetery association).
  • Families and heirs with bequests for cemetery perpetual care, indirectly through the disclosure and governance mechanisms.

Procedural and Timeline Aspects

  • Initial disclosures:
    • Trustees serving as non-association trustees: initial disclosures to the cemetery association within one year of the law’s effective date (i.e., by 2027 for a 2026-enacted law).
    • All dispositions established within 60 days of establishment must be disclosed to the designated cemetery association.
  • Existing dispositions:
    • For existing trusts not administered by a cemetery association, disclosures due by December 31, 2027.
  • Ongoing reporting:
    • Biennial disclosure requirement continues until surrogate’s court updates or approves a related agreement as specified.

Practical Impact and Rationale

  • Increases transparency around funds set aside for cemetery perpetual care.
  • Improves accountability of fiduciaries and strengthens oversight by cemetery associations.
  • Helps cemetery associations manage and verify the adequacy and status of perpetual care funds.
  • Maintains flexibility for courts to assess reasonableness of trust dispositions.

Note: This summary reflects the bill’s substantive provisions and does not constitute legal advice.

Compiled from official sources — confirm details with the bill’s official record.

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