Death Care Compliance Law

Death Care Compliance Law

Preneed: A Pandora's Box of Problems

William Stalter is the founder of Stalter Legal Services and the Preneed Resource Company. Bill focuses his law practice on preneed and death care compliance, serving banks, funeral homes, crematories, and cemeteries. He has written multiple published articles

Category Archives: Total Return Trust

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Preneed Trusts and Value Allocations: Total Return vs Income Return

Posted in Administration, Compliance, Investments, Total Return Trust
As discussed in our prior post, funeral homes are becoming increasingly dependent upon their preneed trustee for individual account administration.  Many trustees that provide account administration rely upon programs that use tax cost basis accounting.  (For a prior discussion of tax cost basis see “Consumer Options and Administrative Hurdles: Market Value Allocations”.)    Tax cost accounting… Continue Reading

The Factors Contributing to Preneed Shortfalls: Investment Return and Operator’s Performance Costs

Posted in Guaranteed, Insurance Funded, Non-guaranteed, Preneed, Preneed Development, Preplanning, Price Protection, Price Protection, Total Return Trust, Trust Funded, Uncategorized
When the Federal Reserve recently announced the end of the quantitative easing program, it did so with a hint that any increase in interest rates could be a considerable time off.  Several global factors may now cause interest rates to remain at unprecedented lows for longer than what the Fed had suggested last December.  As… Continue Reading

Consumer Options and Administrative Hurdles: Market Value Allocations

Posted in Administration, Associations, Compliance, Master Trusts, Total Return Trust
The conventional guaranteed preneed transaction is premised upon investment returns offsetting performance cost increases to the funeral home.  Many funeral homes restrict consumers to single payment preneed contracts to limit their exposure to funding short falls.  If the funeral home allows the consumer to pay the preneed purchase price over 60 months, the preneed trust… Continue Reading

My Preneed Account: Interest Alone Won’t Cut It

Posted in Non-guaranteed, Preplanning, Price Protection, Total Return Trust, Trust Funded, Uncategorized
Since President Obama unveiled the new MyRA as his plan to revive Americans’ saving habits, we have been making comparisons between funding for retirements and preneed.   Like the MyRA, the non-guaranteed preneed contract could represent more of an introduction to preplanning funding than the final preneed product.  As the AARP acknowledged a few years ago,… Continue Reading