Compliance

Subscribe to Compliance

In our third post on Missouri’s endowed care cemetery audits we look at the request for the cemetery’s legal documents.  The current audit notice  requests copies of the cemetery’s trust agreement, rules and regulations, contract forms, deed forms, brochures and any other materials making an endowed care representation.  In essence, the audit is going to…

Our previous post discussed care fund audits and the tracking of a cemetery’s property sales and care fund liability.  The next step of the audit process is following the money to the care fund trust (and the back from the trust to the cemetery).  For these purposes, the Missouri audit notice requests trust statements from…

We had hoped that the Trial Court’s Finding of Facts would shed some light on how a Missouri preneed trust holding life insurance would have income to distribute.  Despite being invested primarily in life insurance policies, Allegiant Bank made monthly income distributions to NPS.  The Trial Court made several findings on how Allegiant Bank failed…

PNC Bank has been hit with $15 million of punitive damages because Allegiant Bank did not know its client.

Before opening a fiduciary account, banks are required to perform due diligence on the trust’s grantor and on the trust’s purposes.   Such due diligence is referred to as ‘know your client’ or “KYC”.  KYC requirements had…

National Prearranged Services is back in the news after a trial court issued a new $102 million judgment against PNC Bank (the corporate successor of Allegiant Bank).  Allegiant Bank served as NPS’ Missouri preneed trustee for six years beginning in 1998.  When PNC Bank agreed to purchase Allegiant in 2004, PNC performed due diligence that…

In our last post we discussed the need for the Missouri State Board to provide guidance to their financial examiners regarding Section 436.425 and insurance funded contract forms.  In this post we will discuss Section 436.425 and trust or joint account funded contracts.

Subparagraph 9 has created confusion for examiners and sellers.  That section states…

At its April meeting, the Missouri State Board of Embalmers and Funeral Directors discussed the formation of a “Phase 3 Committee” that would provide input for the revision of the Board financial examination handbook.  The Board staff is about half way through the second round of preneed examinations (“Phase 2”), and the Board wants to…

We continue our discussion of the composite Federal Form 1041QFT with a post about the individual account statement.

With the composite return, income and expenses are allocated to the individual preneed account and taxes are computed at that level rather than at the trust level.  To allow the IRS to test the composite tax liabilities,…