02-331-16 Me. Code R. § 2
A practitioner of funeral service, funeral director or funeral home may not enter into a mortuary trust agreement for performance in this State that does not substantially conform to one of the following forms that is attached to and made a part of this chapter:
What it is - A credit for service mortuary trust agreement does not obligate a funeral home to provide funeral goods and services for a predetermined price. Rather, the account balance of the trust upon the death of the beneficiary is applied to the cost at time of death of the funeral goods and services selected. The cost at time of death may be higher or lower than the cost of such funeral goods and services at the time the agreement is executed. If the account balance of the trust upon the death of the beneficiary exceeds the cost of the funeral goods and services selected, the payor is entitled to a refund of the excess. If the account balance of the trust upon the death of the beneficiary is insufficient to pay for the funeral goods and services selected, adjustments must be negotiated between the payor and the funeral home. In no event is the funeral home obligated to provide funeral goods or services for which the funeral home will not be compensated.
Payment toward the cost of a credit for service mortuary trust agreement may be made in any amount at any time. A credit for service mortuary trust agreement may be guaranteed by a third party. Funeral goods and services may be selected at time of execution or at any later time.
The payor and the funeral home, upon mutual agreement, may replace a credit for service mortuary trust agreement with a guaranteed price mortuary trust agreement at any time prior to the death of the beneficiary.
A credit for service mortuary trust agreement may contain a conditional guarantee to provide the funeral goods and services selected. Conditions may include, but are not limited to:
What it is - A guaranteed service mortuary trust agreement obligates a funeral home to provide the funeral goods and services selected, with the possible exception of cash advance items, upon the death of the beneficiary, whenever that may be. The contract price must be paid in full by the payor at time of execution, with the possible exception of cash advance items.
The funeral home must provide the funeral goods and services selected, with the possible exception of cash advance items, upon the death of the beneficiary regardless of the account balance of the trust at the time of the beneficiary's death. If the cost of the funeral goods and services selected at time of death exceeds the account balance of the trust, the funeral home must provide the funeral goods and services selected, with the possible exception of cash advance items, regardless of cost and without recourse to the family or estate of the beneficiary or any other payment source. If the cost of the funeral goods and services selected at time of death is less than the account balance of the trust, the funeral home may retain the difference in recognition of the risk of inflationary costs.
What it is - A life insurance mortuary trust agreement funds the provision of funeral goods and services from the proceeds of an existing life insurance policy payable upon the death of the person insured. Life insurance mortuary trust agreements may only be credit for service. Guaranteed service life insurance mortuary trust agreements are not permitted. Funeral goods and services may be selected at time of execution or at any later time.
02-331 C.M.R. ch. 16, § 2