An important revision to Missouri’s personal preference law goes into effect on August 28th. The original law (R.S.Mo. Section 194.119) was confusing to funeral directors about whether an individual could override the preferences of his/her next-of-kin. With the revision, funeral directors can more comfortably rely upon the individual’s durable power of attorney when following the
August 2008
Trade Association Membership: weighing the costs vs. the benefits
By Bill Stalter on
Mortuary Management’s July/August Colleague Wisdom column underscores how difficult it can be to run a trade association. I can empathize with the funeral home operators who took the time to provide their thoughts. As an attorney who specializes in the death care industry, I have to weigh the costs and benefits of membership in trade associations from…
NPS Installment Contracts and the Liquidation Plan
By Bill Stalter on
Posted in NPS/Lincoln
While approval of the SDR’s Liquidation Plan is imperative to providing funds for NPS contracts that are being serviced, and will be serviced during the next few years, funeral directors and consumers are raising valid questions about the Plan. For the consumer who purchased a trust-funded contract from NPS on installments, the Plan fails to…
Un-parking those death care trusts: diversification
By Bill Stalter on
The American Funeral Director recently published Curtis Rostad’s rebuttal letter to a prior story titled “Debunking the Trust Myth”. That same story earned a post on this blog site. While I agree with Mr. Rostad’s views, the sad truth is that many death care trusts do not perform as well as the Indiana Master Trust. It…
The Section 685 QFT amendment: Supporting Soldiers’ Survivors
By Bill Stalter on
Posted in Preneed, Preneed Tax
If the President signs the Hubbard Act (H.R. 6580), the qualified funeral trust will have the capability to fund all of an individual’s final expenses. When enacted, Section 685 imposed a $7,000 cap on the preneed trusts that could elect special tax treatment. While the limitation increased annually, the cap was too low to permit funding…
If that’s what is required to get your attention
By Bill Stalter on
In response to a proposal that preneed trustees be required to provide periodic account statements to contract purchasers, a funeral director asked what liability he would have to consumers who question the trust’s performance during a year such as 2008. Legally speaking: none. But ultimately, death care companies should be accountable to their families for the decisions…