Typically, the standard by which a cemetery is judged to be abandoned is whether the grass is getting cut. But for licensed cemeteries, some states’ laws may also include provisions to deem a cemetery abandoned when regulatory reports are not filed. Care fund reports are intended to inform the cemetery regulator whether the operator is
Compliance
The Fed’s Tapering Plan: A Bumpy Road for Death Care Trusts?
By Bill Stalter on
It has been almost ten years since the return on Government bonds fell below 5%. But bond returns did not hit bottom until four years later when the sub-prime mortgage market collapsed. Those conditions threatened the nation’s credit markets, and so, in 2008, the Federal Reserve Board initiated a stimulus program involving the purchase of…
Qualified Funeral Trusts: once a simple concept
By Bill Stalter on
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)…
Missouri and the Investment Advisor: A Chinese Wall
By Bill Stalter on
Among the rule proposals suggested by the Division of Professional Registration to the State Board of Embalmers and Funeral Directors was the following definition of “External Investment Advisor”:
any licensed, qualified investment advisor approved and authorized by the trustee of the preneed trust and who holds no personal interest in any assets of the preneed …
The Medicare Tax and QFTs: Don’t look a gift horse in the mouth
By Bill Stalter on
Over the past few years, preneed trust administrators have been wondering whether a Section 685 qualified funeral trust could look to each individual trust’s income and apply the lower tax rates for long term capital gains and qualified dividends. The issue has taken on more relevance as preneed trusts look to diversify out of …
Meet Me in St.Louis: the Death Care Regulators Convention
By Bill Stalter on
Missouri’s death care regulators will play host to their peers next week when the North American Death Care Regulators Association convention is held in St. Louis. When you host a convention in NPS’ backyard, the agenda needs to include sessions on what went wrong. The final session of the agenda will catch every …
The Bernanke Factor: The New Volatility for Death Care Trusts
By Bill Stalter on
A Missouri preneed auditor recently requested an explanation from a client why certain accounts were underfunded. The handful of accounts were “underfunded” by varying amounts of a few dollars to twenty dollars. The common fact with each was an initial deposit or substantial deposit in the month preceding the Federal Chairman’s remarks that …
The NPS Criminal Trial: Vicarious Liability?
By Bill Stalter on
David Wulf may stand alone in the crosshairs of the criminal prosecutors, but his fate will impact the NPS preneed trustees (and possibly other registered investment advisors who manage death care funds).
Mr. Wulf had a situation that is unique from what existed in Illinois, Wisconsin, and Tennessee, but is familiar to other death care…
Missouri’s Exam Progress: Time for Changes?
By Bill Stalter on
The Missouri State Board of Embalmers and Funeral Directors will meet in a few weeks, and the topic of fees may be on the agenda. The staff broached the fees topic at the spring meeting, but the matter was tabled for subsequent discussion. Fees and the preneed examination process go hand in hand, and…
Michigan’s Plan: Target Date Investment Strategy
By Bill Stalter on
I stand corrected.
A representative of the Michigan Funeral Directors Association advises that their request for proposal for a new investment advisor for the master trust has resulted in the selection of a firm that will not only assume a true fiduciary relationship to funeral directors and consumers, but that will also guide the Association…