What must be included in endowment care trust funds?

Endowment care trust funds are specifically designed to ensure the long-term maintenance and care of cemetery properties. The inclusion of irrevocable trust agreements in these funds is fundamental because they provide a guarantee that the funds will be preserved and used solely for their intended purpose, which is the care and maintenance of the cemetery.

Irrevocable means that these agreements cannot be altered or revoked without the consent of the beneficiaries, ensuring that the funds will remain in place to support ongoing cemetery operations, even after the individuals who established the trust are no longer involved. This stability is crucial for cemeteries to provide continuous care, maintain grounds, and manage assets effectively over time.

In contrast, options such as reversible trust agreements would not provide the necessary long-term security for the funds, as they allow for changes that could undermine the dedicated care purpose. Investing in non-income producing assets does not align with the financial strategy required for these funds, as they need to generate income to sustain cemetery operations. Lastly, the distribution of funds to owners contradicts the primary aim of endowment care trusts, which is to ensure that funds are retained for maintenance rather than distributed.