15Payments from funeral trust

15 Payments from funeral trust

(1)  The custodian of a funeral trust must not pay any money out of the funeral trust unless the payment is made –

(a) to a person carrying on a funeral business for provision of funeral services under a prepaid funeral agreement following the death of the recipient; or

(b) to the contributor on the termination of a prepaid funeral agreement in accordance with this Act; or

(c) for reasonable expenses incurred by the custodian in the administration of the funeral trust and investments of the funeral trust; or

(d) for charges by the custodian in accordance with a scale approved by the Director for the administration of the funeral trust; or

(e) in accordance with section 23(2) .

Penalty:  Fine not exceeding 100 penalty units.

(2)  The custodian of a funeral trust must not make a payment from the funds of the funeral trust otherwise than in accordance with this Act.

Penalty:  Fine not exceeding 100 penalty units.

(3)  Where an offence has been committed in respect of the payment of money from a funeral trust, a magistrate may, on the application of a contributor, custodian or other interested person, direct such reimbursement of the funeral trust as would be required to restore –

(a) any payments improperly made from the trust; and

(b) any other loss to the trust that arose from that improper payment.

(4)  Where a payment out of a funeral trust is made following the death of a recipient, the custodian must make the payment to the person carrying on the relevant funeral business but the amount paid is not to exceed an amount required for –

(a) the funeral business to provide the funeral services required under the prepaid funeral agreement; and

(b) any additional amount of GST payable for goods or services provided under the agreement.

(5)  Where a payment out of a funeral trust is required following termination of a prepaid funeral agreement in accordance with this Act, the payment is to be made to the contributor and is to include an amount representing a reasonable proportion of the value of the funeral trust, having regard to the time that the funds have been deposited in the funeral trust.