In our prior post (Missouri Seller Exams: Timely Deposits), we discussed the receipt and deposit records that funeral homes may be required to maintain. However, to demonstrate that they are complying with the preneed law’s deposit requirements, funeral homes will also be dependent upon the records generated by their funding source to confirm consumer funds were received within the time required by Chapter 436. It will not be enough for the funeral home to produce a deposit slip. Funeral homes will need to produce a trust statement or insurance statement reflecting receipt of those same funds. And, the proposed seller record keeping requirements go further with regard to consumers that pay funds directly to the funding source. The most recent proposal included the following language:
If funds for a preneed contract are paid by the consumer directly to the financial institution, the seller shall maintain records from the financial institution showing the dates and amounts of each deposit and the name of the preneed contract beneficiary for whose benefit the deposit is made.
The seller’s trustee will be required to track deposits to the trust by individual consumer accounts. This is a stark contrast to the administration required under the prior law where the trustee followed the seller’s instructions.