{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-2326.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-2326.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-2326.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-2326.html"}],"law_id":81056,"edition_id":1,"section_id":81056,"structure_id":13695,"section_number":"54.1-2326","catch_line":"Who may serve as trustee of preneed trust fund","history":"1998, cc. 708, 721.","full_text":"A\n\nThe trustee of the preneed trust fund shall be appointed by the person owning, operating, or developing a cemetery company. If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall be approved by the Board.\n\t\t\tA trustee that is not a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth shall apply to the Board for approval, and the Board shall approve the trustee when the Board has become satisfied that the applicant:1\n\nEmploys and is directed by persons who are qualified by character, experience, and financial responsibility to care for and invest the funds of others;2\n\nWill perform its duties in a proper and legal manner and that the trust funds and interest of the public generally will not be jeopardized; and3\n\nIs authorized to do business in the Commonwealth and has adequate facilities to perform its duties as trustee.B\n\nIf the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall furnish a fidelity bond with corporate surety thereon, payable to the trust established, which shall be designated “Preneed Trust Fund for (name of cemetery company),” in a sum equal to but not less than 100 percent of the value of the principal of the trust estate at the beginning of each calendar year, which bond shall be deposited with the Board.C\n\nIf the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, and if it appears that an officer, director or employee of the trustee is dishonest, incompetent, or reckless in the management of a preneed trust fund, the Board may bring an action in the appropriate court to remove the trustee and to impound the property and business of the trustee as may be reasonably necessary to protect the trust funds.","order_by":null,"text":{"0":{"id":290520,"text":"The trustee of the preneed trust fund shall be appointed by the person owning, operating, or developing a cemetery company. If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall be approved by the Board.\n\t\t\tA trustee that is not a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth shall apply to the Board for approval, and the Board shall approve the trustee when the Board has become satisfied that the applicant:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":290521,"text":"Employs and is directed by persons who are qualified by character, experience, and financial responsibility to care for and invest the funds of others;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":290522,"text":"Will perform its duties in a proper and legal manner and that the trust funds and interest of the public generally will not be jeopardized; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":290523,"text":"Is authorized to do business in the Commonwealth and has adequate facilities to perform its duties as trustee.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":290524,"text":"If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall furnish a fidelity bond with corporate surety thereon, payable to the trust established, which shall be designated “Preneed Trust Fund for (name of cemetery company),” in a sum equal to but not less than 100 percent of the value of the principal of the trust estate at the beginning of each calendar year, which bond shall be deposited with the Board.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":290525,"text":"If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, and if it appears that an officer, director or employee of the trustee is dishonest, incompetent, or reckless in the management of a preneed trust fund, the Board may bring an action in the appropriate court to remove the trustee and to impound the property and business of the trustee as may be reasonably necessary to protect the trust funds.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13695,"edition_id":1,"name":"Cemetery Operators, Perpetual Care Trust Funds and Preneed Burial Contracts","identifier":"23.1","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:45:35","date_modified":"2026-06-26 03:45:35","permalink":{"id":240255,"object_type":"structure","relational_id":13695,"identifier":"23.1","token":"54.1\/II\/23.1","url":"\/54.1\/II\/23.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12755,"edition_id":1,"name":"Professions and Occupations Regulated by the Department of Professional and Occupational Regulation and Boards Within the Department","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12754,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239415,"object_type":"structure","relational_id":12755,"identifier":"II","token":"54.1\/II","url":"\/54.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12754,"edition_id":1,"name":"Professions and Occupations","identifier":"54.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239313,"object_type":"structure","relational_id":12754,"identifier":"54.1","token":"54.1","url":"\/54.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":61603,"structure_id":13695,"section_number":"54.1-2310","catch_line":"Definitions","url":"\/54.1-2310\/","token":"54.1\/II\/23.1\/54.1-2310","metadata":false},{"id":72586,"structure_id":13695,"section_number":"54.1-2311","catch_line":"Cemetery operators required to be licensed by the Board","url":"\/54.1-2311\/","token":"54.1\/II\/23.1\/54.1-2311","metadata":false},{"id":81993,"structure_id":13695,"section_number":"54.1-2312","catch_line":"Exemptions","url":"\/54.1-2312\/","token":"54.1\/II\/23.1\/54.1-2312","metadata":false},{"id":85224,"structure_id":13695,"section_number":"54.1-2312.01","catch_line":"Special interments; definitions; regulations by Board","url":"\/54.1-2312.01\/","token":"54.1\/II\/23.1\/54.1-2312.01","metadata":false},{"id":81764,"structure_id":13695,"section_number":"54.1-2312.1","catch_line":"Resale of interment right; conditions for resale transaction; contents of transfer form; approval by cemetery company","url":"\/54.1-2312.1\/","token":"54.1\/II\/23.1\/54.1-2312.1","metadata":false},{"id":78987,"structure_id":13695,"section_number":"54.1-2312.2","catch_line":"Resale of interment right by certain churches and religious organizations","url":"\/54.1-2312.2\/","token":"54.1\/II\/23.1\/54.1-2312.2","metadata":false},{"id":76163,"structure_id":13695,"section_number":"54.1-2313","catch_line":"Board; appointment; terms; vacancies; meetings; quorum; other powers; regulations","url":"\/54.1-2313\/","token":"54.1\/II\/23.1\/54.1-2313","metadata":false},{"id":56354,"structure_id":13695,"section_number":"54.1-2313.1","catch_line":"Protection of preneed burial and perpetual care trust funds; operation of cemetery company; appointment of receiver","url":"\/54.1-2313.1\/","token":"54.1\/II\/23.1\/54.1-2313.1","metadata":false},{"id":59048,"structure_id":13695,"section_number":"54.1-2314","catch_line":"Refusal, suspension or revocation of license or registration","url":"\/54.1-2314\/","token":"54.1\/II\/23.1\/54.1-2314","metadata":false},{"id":68604,"structure_id":13695,"section_number":"54.1-2315","catch_line":"Other prohibited activities","url":"\/54.1-2315\/","token":"54.1\/II\/23.1\/54.1-2315","metadata":false},{"id":68252,"structure_id":13695,"section_number":"54.1-2316","catch_line":"Certain representations unlawful; perpetual care trust fund required","url":"\/54.1-2316\/","token":"54.1\/II\/23.1\/54.1-2316","metadata":false},{"id":77982,"structure_id":13695,"section_number":"54.1-2317","catch_line":"Who may serve as trustee of perpetual care trust fund","url":"\/54.1-2317\/","token":"54.1\/II\/23.1\/54.1-2317","metadata":false},{"id":66009,"structure_id":13695,"section_number":"54.1-2318","catch_line":"Application of Part A (\u00a7 64.2-1200 et seq.) of Subtitle IV of Title 64.2","url":"\/54.1-2318\/","token":"54.1\/II\/23.1\/54.1-2318","metadata":false},{"id":84608,"structure_id":13695,"section_number":"54.1-2319","catch_line":"Deposit in perpetual care trust fund required upon sale of graves, etc","url":"\/54.1-2319\/","token":"54.1\/II\/23.1\/54.1-2319","metadata":false},{"id":69258,"structure_id":13695,"section_number":"54.1-2320","catch_line":"Additional deposit not required upon subsequent sale of same grave, crypt or niche","url":"\/54.1-2320\/","token":"54.1\/II\/23.1\/54.1-2320","metadata":false},{"id":56252,"structure_id":13695,"section_number":"54.1-2321","catch_line":"Recovery of original perpetual care trust fund deposit","url":"\/54.1-2321\/","token":"54.1\/II\/23.1\/54.1-2321","metadata":false},{"id":68822,"structure_id":13695,"section_number":"54.1-2322","catch_line":"Use of income from perpetual care trust fund; distributions","url":"\/54.1-2322\/","token":"54.1\/II\/23.1\/54.1-2322","metadata":false},{"id":82665,"structure_id":13695,"section_number":"54.1-2323","catch_line":"Financial records required","url":"\/54.1-2323\/","token":"54.1\/II\/23.1\/54.1-2323","metadata":false},{"id":77504,"structure_id":13695,"section_number":"54.1-2324","catch_line":"Financial report and report of independent certified public accountant required for perpetual care trust funds","url":"\/54.1-2324\/","token":"54.1\/II\/23.1\/54.1-2324","metadata":false},{"id":78778,"structure_id":13695,"section_number":"54.1-2325","catch_line":"Deposit in preneed trust required upon sale of property or services not to be delivered within 120 days","url":"\/54.1-2325\/","token":"54.1\/II\/23.1\/54.1-2325","metadata":false},{"id":81056,"structure_id":13695,"section_number":"54.1-2326","catch_line":"Who may serve as trustee of preneed trust fund","url":"\/54.1-2326\/","token":"54.1\/II\/23.1\/54.1-2326","metadata":false},{"id":75693,"structure_id":13695,"section_number":"54.1-2327","catch_line":"Itemized statement and general price list of burial fees to be furnished; solicitations prohibited","url":"\/54.1-2327\/","token":"54.1\/II\/23.1\/54.1-2327","metadata":false},{"id":65840,"structure_id":13695,"section_number":"54.1-2328","catch_line":"Requirements of preneed burial contracts","url":"\/54.1-2328\/","token":"54.1\/II\/23.1\/54.1-2328","metadata":false},{"id":80895,"structure_id":13695,"section_number":"54.1-2329","catch_line":"Identification of specific funds","url":"\/54.1-2329\/","token":"54.1\/II\/23.1\/54.1-2329","metadata":false},{"id":80662,"structure_id":13695,"section_number":"54.1-2330","catch_line":"Specific funds and income to remain in preneed trust account; exception","url":"\/54.1-2330\/","token":"54.1\/II\/23.1\/54.1-2330","metadata":false},{"id":54782,"structure_id":13695,"section_number":"54.1-2331","catch_line":"Disbursement of trust funds upon performance of contract","url":"\/54.1-2331\/","token":"54.1\/II\/23.1\/54.1-2331","metadata":false},{"id":66596,"structure_id":13695,"section_number":"54.1-2332","catch_line":"Seller required to keep records","url":"\/54.1-2332\/","token":"54.1\/II\/23.1\/54.1-2332","metadata":false},{"id":58614,"structure_id":13695,"section_number":"54.1-2333","catch_line":"Financial report and report of independent certified public accountant required for preneed trust accounts","url":"\/54.1-2333\/","token":"54.1\/II\/23.1\/54.1-2333","metadata":false},{"id":69291,"structure_id":13695,"section_number":"54.1-2334","catch_line":"Inclusion of property and services to be delivered within 120 days","url":"\/54.1-2334\/","token":"54.1\/II\/23.1\/54.1-2334","metadata":false},{"id":75017,"structure_id":13695,"section_number":"54.1-2335","catch_line":"Breach of contract by seller; trust to be single purpose trust","url":"\/54.1-2335\/","token":"54.1\/II\/23.1\/54.1-2335","metadata":false},{"id":74745,"structure_id":13695,"section_number":"54.1-2336","catch_line":"Trustee may rely on certifications and affidavits","url":"\/54.1-2336\/","token":"54.1\/II\/23.1\/54.1-2336","metadata":false},{"id":70137,"structure_id":13695,"section_number":"54.1-2337","catch_line":"Transfer of trust funds to another trustee","url":"\/54.1-2337\/","token":"54.1\/II\/23.1\/54.1-2337","metadata":false},{"id":55080,"structure_id":13695,"section_number":"54.1-2338","catch_line":"Use of trustee's name in advertisements","url":"\/54.1-2338\/","token":"54.1\/II\/23.1\/54.1-2338","metadata":false},{"id":70915,"structure_id":13695,"section_number":"54.1-2339","catch_line":"Construction and development of mausoleums and garden crypts","url":"\/54.1-2339\/","token":"54.1\/II\/23.1\/54.1-2339","metadata":false},{"id":63571,"structure_id":13695,"section_number":"54.1-2340","catch_line":"Waiver of chapter void","url":"\/54.1-2340\/","token":"54.1\/II\/23.1\/54.1-2340","metadata":false},{"id":77379,"structure_id":13695,"section_number":"54.1-2341","catch_line":"Exemption from levy, garnishment and distress","url":"\/54.1-2341\/","token":"54.1\/II\/23.1\/54.1-2341","metadata":false},{"id":54676,"structure_id":13695,"section_number":"54.1-2342","catch_line":"Penalties","url":"\/54.1-2342\/","token":"54.1\/II\/23.1\/54.1-2342","metadata":false}],"previous_section":{"id":78778,"structure_id":13695,"section_number":"54.1-2325","catch_line":"Deposit in preneed trust required upon sale of property or services not to be delivered within 120 days","url":"\/54.1-2325\/","token":"54.1\/II\/23.1\/54.1-2325","metadata":false},"next_section":{"id":75693,"structure_id":13695,"section_number":"54.1-2327","catch_line":"Itemized statement and general price list of burial fees to be furnished; solicitations prohibited","url":"\/54.1-2327\/","token":"54.1\/II\/23.1\/54.1-2327","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-2326\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapters 708<\/a> and 721<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":54676,"section_number":"54.1-2342","catch_line":"Penalties","order_by":null,"url":"\/54.1-2342\/"}],"refers_to":false,"permalink":{"id":240337,"object_type":"law","relational_id":81056,"identifier":"54.1-2326","token":"54.1\/II\/23.1\/54.1-2326","url":"\/54.1-2326\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-2326\/","token":"54.1\/II\/23.1\/54.1-2326","dublin_core":{"Title":"Who may serve as trustee of preneed trust fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-2326","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The trustee of the preneed<\/span> trust fund shall be appointed by the person owning, operating, or developing a cemetery company<\/span>. If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall be approved by the Board<\/span>.\n\t\t\tA trustee that is not a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth shall apply to the Board<\/span> for approval, and the Board<\/span> shall approve the trustee when the Board<\/span> has become satisfied that the applicant: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Employs and is directed by persons who are qualified by character, experience, and financial responsibility to care for and invest the funds of others; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Will perform its duties in a proper and legal manner and that the trust funds and interest of the public generally will not be jeopardized; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Is authorized to do business in the Commonwealth and has adequate facilities to perform its duties as trustee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee shall furnish a fidelity bond<\/span> with corporate surety<\/span> thereon, payable to the trust established, which shall be designated “Preneed<\/span> Trust Fund for (name of cemetery company<\/span>),” in a sum equal to but not less than 100 percent of the value of the principal of the trust estate at the beginning of each calendar year, which bond<\/span> shall be deposited with the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the trustee is other than a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, and if it appears that an officer, director or employee of the trustee is dishonest, incompetent, or reckless in the management of a preneed<\/span> trust fund, the Board<\/span> may bring an action in the appropriate court<\/span> to remove the trustee and to impound the property and business of the trustee as may be reasonably necessary to protect the trust funds. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWHO MAY SERVE AS TRUSTEE OF PRENEED TRUST FUND (\u00a7 54.1-2326)\n\nA. The trustee of the preneed trust fund shall be appointed by the person\nowning, operating, or developing a cemetery company. If the trustee is other\nthan a Virginia trust company or trust subsidiary or a federally insured bank or\nsavings institution doing business in the Commonwealth, the trustee shall be\napproved by the Board.\n\t\t\tA trustee that is not a Virginia trust company or trust subsidiary or a\nfederally insured bank or savings institution doing business in the Commonwealth\nshall apply to the Board for approval, and the Board shall approve the trustee\nwhen the Board has become satisfied that the applicant:\n\n 1. Employs and is directed by persons who are qualified by character,\n experience, and financial responsibility to care for and invest the funds of\n others;\n\n 2. Will perform its duties in a proper and legal manner and that the trust\n funds and interest of the public generally will not be jeopardized; and\n\n 3. Is authorized to do business in the Commonwealth and has adequate\n facilities to perform its duties as trustee.\n\nB. If the trustee is other than a Virginia trust company or trust subsidiary or\na federally insured bank or savings institution doing business in the\nCommonwealth, the trustee shall furnish a fidelity bond with corporate surety\nthereon, payable to the trust established, which shall be designated\n“Preneed Trust Fund for (name of cemetery company),” in a sum equal\nto but not less than 100 percent of the value of the principal of the trust\nestate at the beginning of each calendar year, which bond shall be deposited\nwith the Board.\n\nC. If the trustee is other than a Virginia trust company or trust subsidiary or\na federally insured bank or savings institution doing business in the\nCommonwealth, and if it appears that an officer, director or employee of the\ntrustee is dishonest, incompetent, or reckless in the management of a preneed\ntrust fund, the Board may bring an action in the appropriate court to remove the\ntrustee and to impound the property and business of the trustee as may be\nreasonably necessary to protect the trust funds.\n\nHISTORY: 1998, cc. 708, 721.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}