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

Tag Archives: mft

The $64 Million Dollar Question: Is the Money there?

Posted in Master Trusts, Missouri - SB1
While the Missouri State Board of Embalmers and Funeral Directors’ Complaint against the Missouri Funeral Trust alleges the program has failed to maintain adequate records, documents and oversight, funeral directors want to know whether the trust is adequately funded.   Although the State Board raised issues with some contracts reported with zero deposit balances, the Complaint does… Continue Reading

The MFT Complaint: Assumption of Duties of a Prior Seller

Posted in Exams/audits, Missouri - SB1, Recordkeeping
In Paragraphs 35 through 38 of the Complaint filed against the Missouri Funeral Trust, the State Board of Embalmers and Funeral Directors seek discipline against MFT for its inability to produce copies of contracts sold by a funeral home that transferred its trust to MFT.  The original seller funeral home apparently amended several of its… Continue Reading

MFT Complaint: Insurance Contract Records

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
Paragraph 26c of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records regarding the insurance policies for insurance funded preneed contracts….”  We suspect this claim may be directed at a practice where the MFT trustee has accommodated funeral homes that have… Continue Reading

The MFT Complaint: Principal in Excess of the Preneed Contract

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
Paragraph 26b of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records that explain why the principal held in trust exceeds the face value of the preneed contract associated with that account…”  We anticipate that this claim is considering the contract… Continue Reading

The Proceeding against The Missouri Funeral Trust: The Long Build Up

Posted in Exams/audits, Missouri - SB1, Recordkeeping, Uncategorized
We start our review of the case against the Missouri Funeral Trust with the procedural issues raised in the State Board’s Complaint and MFT’s Answer.   From the Answer, we learn that the preneed financial examination was initiated on January 20, 2011.  But, it was almost three years before an examination report was sent by the… Continue Reading

The Missouri Funeral Trust Lawsuit: Is Investment Performance a Trade Secret?

Posted in Master Trusts, Missouri - SB1
The MFT did not catch a break with the court assigned to its lawsuit against the Missouri State Board of Embalmers and Funeral Directors and Catholic Fraternal Life.   The hearing scheduled for September 28th was continued for another four weeks, and in the meantime, the parties continue to file evidentiary discovery requests.  The Association’s preneed… Continue Reading

The Missouri Funeral Trust and its Catch-22

Posted in Compliance, Master Trusts, Missouri - SB1, Recordkeeping
A status hearing is scheduled for September 28th in the lawsuit filed by the Missouri Funeral Trust against the State Board of Embalmers and Funeral Directors and Catholic Fraternal Life.   The lawsuit is now 4 months removed from the request for a temporary restraining order that, among other relief sought, would stay the financial examination… Continue Reading

The MFT Lawsuit Claims: The Client List

Posted in Associations, Master Trusts, Missouri - SB1, Preneed
The lawsuit brought by the Missouri Funeral Trust against the Missouri State Board of Embalmers and Funeral Directors and CFL Pre-Need includes  a number of unique and dubious claims.  For example, the lawsuit defines CFL Pre-Need, an insurance company, as a competitor but not funeral home clients that are licensed as a preneed seller.  The… Continue Reading

The High Cost of Litigation: Copy Charges

Posted in NPS/Lincoln
The Special Deputy Receiver for National Prearranged Services recently filed a Bill of Costs with the Federal trial court.  The Bill of Costs seeks to recover copy charges of more than $500,000 from a former NPS trustee.  Those costs do not include attorneys’ fees.  Litigation can be very costly. Missouri’s preneed regulators are keenly aware of the costs of… Continue Reading

Trustee Investment Liability: The Preneed Purchaser Wild Card

Posted in Associations, Fiduciary, Investments
Back in March, the NPS Special Deputy Receiver won a judgement of $355 million against PNC Bank (as successor to Allegiant Bank).   In defense of Allegiant Bank, PNC argued that Missouri’s Chapter 436 defined the trustee’s duties as owed solely to the preneed seller.  That was the intent of the Missouri Funeral Directors Association when… Continue Reading

Association Master Trusts: De Facto Trustees

Posted in Compliance, Exams/audits, Fiduciary, Investments, Master Trusts
According to court filings, the reorganization plans for the Wisconsin Master Trust and California Master Trust each seek to eliminate ‘de facto trustee’ relationships that allowed the respective associations’ executives to ‘misuse, misspend, and mismanage millions of dollars’ of trust funds, and to direct funds towards inappropriate and unsuitable investments that served the association’s, rather… Continue Reading