Committee advances bill letting funeral homes invest pre‑need funds in irrevocable trusts under Prudent Investor Act

Representative Larson presented House Bill 181, which would allow deposits made under prepaid (preneed) funeral contracts to be placed into an irrevocable preneed funeral trust and invested in compliance with Wyoming's prudent‑investor standards. The bill would add an option — in addition to currently authorized vehicles such as bank deposits, certificates of deposit and revocable trusts — and would direct that rules require notice to buyers about what investment vehicle will be used and whether they would retain any future access to the funds. Rules promulgated by the insurance commissioner would not require additional surety bond for funds in an irrevocable preneed trust.

Representative Larson told the committee the existing statutory framework governing preneed funeral arrangements dates to the 1970s and that investment options and regulatory practice have changed since then. He said the bill was drafted with input from…