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

Legislation was introduced this week in the Kansas Legislature, and one of the bill’s changes seeks to clarify how cemetery care fund requirements can be computed. We have found this a source of confusion for cemeteries and regulators in many states. Depending upon the type of interment right purchased, the care fund requirement is often

The International Cemetery, Cremation and Funeral Association (ICCFA) made an old but persuasive argument to get the IRS to exempt cemetery care trusts from the Medicare tax that will fund ObamaCare.  As discussed in a prior post, the IRS had initially proposed to apply the tax to both cemetery care trusts and preneed trusts.  With

 A cemetery operator recently expressed his frustration with the trust officer of his care fund trust.   An examination of the trust had cited the operator for inappropriate distributions from principal with regard to expense payments.  We suggested to the operator that it is very common for trustees to set up care fund accounts with

In its past two newsletters, my local chapter of the Funeral Consumer Alliance has reported on the difficulties in finding cemeteries that permit natural burials. In the Spring newsletter, the FCA of Greater KC reported on how the Catholic Cemeteries of Northeast Kansas was reconsidering natural burials at one of its six cemeteries. In

As cemeteries struggle with harsh economic conditions, regulators are bound to look at their ‘problem cemeteries’ and weigh whether legal proceedings are necessary to preserve the care funds mandated by state law. To the extent such proceedings are premised in part on how capital gains are defined and whether distributions from capital gains are an

For obvious reasons, life insurance is the preneed funding choice for many funeral directors. One hundred percent trusting laws give proactive preneed organizations no choice but to use insurance funding. Insurance provides the commissions needed to finance marketing and a sales force, and, maybe as important, relieves the funeral home from preneed accounting and administration.