Like the Swine Flu, a preneed virus has been spreading across the Midwest. Looking for a cure, state legislators and regulators have been forming research teams. It all started last summer, with Missouri’s Chapter 436 (funeral) working group and Chapter 214 (cemetery) working group. Now, Illinois is establishing a preneed task force, and Kansas
April 2009
They can’t legislate morality, but they can impose due diligence requirements
By Bill Stalter on
Missouri’s preneed reform legislation will be amended on the House floor in the next day or so, and some of the Representatives have heard that old phrase about legislating morality. There is some truth to that phrase, and to some of the other objections raised against the reform legislation.
Preneed oversight will impose a substantial…
Tax Day and next year’s QFT
By Bill Stalter on
Many preneed trusts either experienced significant capital losses last year or are sitting on assets that have unrealized losses. For those trusts that have taken a Section 685 election, these losses may be carried into future years as a capital loss carryover. While everyone would prefer to avoid realizing those losses, that loss can be…
The IRS and its role in the IFDA master trust problems
By Bill Stalter on
As new allegations surface about the Merrill Lynch broker associated with the IFDA master trust, some may appropriately ask why a preneed trust would ever invest in an insurance product. There was a time when the twain shall never meet. That all changed in January 1988, and specifically when the IRS and Treasury decided to…
Sen. Burris’ issues and keeping the facts straight
By Bill Stalter on
With a recent editorial opinion, the State Journal-Register seeks to keep U.S. Senator Roland Burris accountable for his role in the IFDA master trust problems by asking the following questions:
· As comptroller, why did he think it was a good idea to allow the IFDA control of the fund?
· How did he…
Missouri and NPS’ Orphaned Contracts
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
While the settlement negotiated with the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) provides funding for the vast majority of NPS preneed contracts, there could be as many as 7,500 NPS preneed contracts that fall outside this coverage. For one of a couple of reasons, NPS never purchased an insurance policy for…