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: Non-guaranteed

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

Posted in Guaranteed, Insurance Funded, Non-guaranteed, Preneed, Preplanning, 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

Consumers Payment Options: Administrative Hurdles and Preneed Trusts

Posted in Administration, Associations, Compliance, Master Trusts, Non-guaranteed, NPS/Lincoln, Recordkeeping, Trust Funded
There are three scenarios for administration of preneed installment payments: the funeral operator collects payments, the trustee collects payments or a third party administrator collects payments.  The entity collecting installment payments must be able to apply each payment to the correct preneed account, and provide the other party (or parties) current payment balances.  If the … Continue Reading

Talk of a Lifetime: Restarting the Prearrangment Process

Posted in Non-guaranteed, Preneed, Preplanning, Uncategorized
One message that can be taken from the FAMIC’s Talk of a Lifetime campaign is that funeral directors need to re-think their prearrangement procedures.  Perhaps too much emphasis has been given to preneed, and not enough to the planning process.  Prearrangement marketing and procedures have often been crafted by the funeral home’s preneed funding agent.  … Continue Reading

Preneed Contract Holders: the lonely 5%

Posted in Guaranteed, Non-guaranteed, Preneed, Preneed Development, Preplanning, Uncategorized
The Memorial Business Journal recently reported on findings from the NFDA’s 2014 Consumer Awareness and Preferences Study.   Some of the findings may not come as much of a surprise to funeral directors, such as consumer demands are changing.  But, findings regarding how many respondents have made efforts to prearrange, and prepay, for funerals were surprising.  … Continue Reading

Qualified Funeral Trusts: once a simple concept

Posted in Master Trusts, Non-guaranteed, Preneed Tax, Taxes, Uncategorized
In has been almost twenty years since the Balanced Budget Act of 1995 introduced the concept of a simplified tax return for preneed trusts.  Initially, the “Qualified Funeral Trust” concept called for a flat 15% tax on accounts with contributions of $5,000 or less.  A conference committee succeeded in getting a higher contribution limitation ($7,000) … Continue Reading

My Preneed Account: Interest Alone Won’t Cut It

Posted in Non-guaranteed, Preplanning, 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

MyPA: No Free Passes

Posted in Non-guaranteed, Preplanning, Uncategorized
Our recent post on similarities of the MyRA and non-guaranteed preneed concluded with references to how criticisms of President Obama’s new retirement account were applicable to preneed.  One such criticism relates to the lack of investment performance, but we will save that issue for a future date.  For this post we want to address the … Continue Reading

Master Trusts: Finding the Rails

Posted in Fiduciary, Guaranteed, IFDA, Master Trusts, Missouri - SB1, Non-guaranteed, Preneed, Trust Funded
Both the Memorial Business Journal and the Funeral Service Insider commented last week on the Milwaukee Journal Sentinel’s February 7th article regarding the former executive director of the Wisconsin Funeral Directors Association. Several issues were raised that should be included in future industry debate, and in particular, I would agree with Mr. Isard’s questions whether … Continue Reading