Preneed: A Pandora's Box of Problems
Death Care trade publications such as the Funeral Service Insider and the FuneralWire advocate that funeral homes revisit the non-guaranteed preneed contract. I agree that funeral homes should reconsider the non-guaranteed preneed contract, but for reasons different from those expressed by other authors.
The non-guaranteed preneed contract affords flexibility and portability to the individual who wants to do more…
Whether it is because of state law restrictions or preneed purchaser demographics, death care trusts have unique requirements when it comes to investments. Consequently, it is fairly common for a death care trust to utilize an investment advisor who has experienced with the industry. However, the deductibility of the fees paid to outside advisors by…
The Clayton Smart debacle has been, and will continue to be, the subject of articles calling for preneed reform. A recent AARP article titled R.I.P. Off will be one of the more controversial (leading to frequent citations by consumer advocates). While the article is biased and should be rebuked by the death care industry for its various…
A Wisconsin bill that would establish a right of sepulcher looks bound for passage (AB 305). There are several things to like about this bill. It would establish an individual’s right to control the disposition of his or her body, and to designate an agent authorized to carry out that directive. The bill…
The National Funeral Directors Association has taken the lead in getting legislation introduced to eliminate the dollar cap imposed on qualified funeral trusts. While I hope the NFDA succeeds, it won’t be without a fight from the IRS.
As the death care industry inches towards the non-guaranteed preneed transaction, the IRS will express its concerns over abusive trusts. …
For the second time in 7 years, the Delaware legislature is taking up the issue of cemetery oversight. As with most death care legislation, Delaware’s Cemetery Study Committee faces two hurdles: finding answers for aging cemeteries that lack revenues for maintenance, and reconciling the conflicting goals of cemeterians, funeral homes, monument vendors, local governments and the public. …