Because, that is our Policy. The death care industry is hearing that more frequently these days. Last July, an Illinois client was advised by the Department of Healthcare and Family Services that his preneed contract would have to be revised to comply with the Department’s new policy about excess preneed funds. A few clients in… Continue Reading
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Missouri’s Preneed Reform: the 2015 Factor.
Posted in Missouri - SB1, Preneed, ReformOn January 14th, Missouri Governor Jay Nixon will be sworn in for his second term, and we are wondering whether the Governor’s plans for 2015 are influencing the direction of Missouri’s preneed reform. With commentary such as that published by the St. Louis Post Dispatch, the Governor may have his eyes on a 2015 campaign… Continue Reading
Informing the Consumer (and the Industry)
Posted in Funeral, Preneed, ReformThe need for better preneed oversight is obvious, but regulators often lack resources and expertise. The state of Connecticut made headlines recently for the decision to make budget cuts by de-regulating the death care industry*. Connecticut funeral directors challenged the decision, and the state issued a ‘clarification’ and withdrew the plan. (That’s correct, the funeral… Continue Reading
Kansas Cemetery Legislation: a second bite at the apple
Posted in Cemeteries, Legislation, Preneed, ReformIt is a bit of déjà vu for Kansas cemeteries. Legislation to increase preneed trusting and to require monthly reporting was introduced in the Kansas House. But HB 2240 will look familiar to those cemetery corporations that participated in 2009 and 2010 cemetery legislative meetings conducted by the Kansas Secretary of State. As previously reported… Continue Reading
Not your typical Christmas wish list: Missouri legislation
Posted in Funeral, Legislation, Missouri - SB1, Preneed, ReformTriggered by the NPS collapse, preneed reform rolled out of the Missouri legislature like a tsunami. When the funeral industry was slow to organize and respond to the situation, legislators worked with state officials to imposed sweeping changes. While SB1 does reflect input provided to the State Board by the industry, the law has flaws… Continue Reading
Will there be an Exhibitor’s hall?
Posted in ReformConventions and seminars provide trade associations and trade journals important sources of revenue. Accordingly, the death care industry has plenty of ‘retreat opportunities’ to choose from. However, there will be a death care convention held in Montgomery Alabama this weekend that will be off limits to funeral directors, cemeterians and their legions of industry vendors. Death care… Continue Reading
The Preneed Tax
Posted in Compliance, Preneed, ReformSeveral states have passed laws in the past few years mandating greater preneed oversight. But with state budgets in decline after the 2008 market crash, regulators are hard pressed to find a way to pay for consumer protection. Colorado’s new law simply states that the contract seller shall bear the cost of its examination. In… Continue Reading
The Quest for Knowledge: Nebraska preneed reporting
Posted in IFDA, Preneed, ReformFor more than 20 years, Nebraska preneed sellers have filed an annual report that accounts for the aggregate contributions and distributions from their trust funds. The annual report form also computes the amount of income that must be accrued to the account if the seller elects to withdraw excess income from the trust. In its… Continue Reading
Investment Restrictions: who’s guaranty?
Posted in IFDA, Investments, Preneed, ReformThe Springfield Journal-Register recently reported that Illinois’ Cemetery Oversight Task Force made a recommendation to restrict preneed trusts to investing in government-backed securities. While its difficult to actually find that recommendation in the Task Force’s report, it is not a bad idea for the consumers who purchased a non-guaranteed preneed contract. However, that type of restriction would hinder funeral homes that offer guaranteed contracts. The… Continue Reading
March Madness: Kansas cemetery legislation
Posted in Cemeteries, Legislation, Preneed, ReformWith two of the nation’s top ten college basketball teams, Kansans are exhibiting clear symptoms of March Madness. With Topeka located between Lawrence and Manhattan, bipartisanship may be tested as tensions mount this week with the Big 12 tournament and the NCAA seedings announcement on Sunday. When Kansas legislators resume their meetings the week of… Continue Reading
Cemetery Legislation in the Heartland
Posted in Cemeteries, Legislation, ReformRegulators in Missouri and Kansas will be pursuing legislation this spring for more authority in providing oversight to cemeteries. With its Burr Oak problems, Illinois can’t be too far behind. Whether it is the economy or the unscrupulous owner, regulators are finding they lack both the expertise and authority to properly protect the cemetery consumer.… Continue Reading
Setting Up Small Funeral Homes To Fail: Joint Accounts
Posted in Missouri - SB1, Preneed, Preplanning, ReformLike most states’ preneed laws, Missouri’s Chapter 436 has always contemplated a depository accounts for the small funeral operator who provides preneed as an accommodation. Many funeral homes do not sell enough preneed to warrant the expense and hassle of either a trust or an insurance license. Chapter 436 allows the funeral director to place… Continue Reading
Third time’s the Charm: Preneed Legislation
Posted in Cemeteries, Funeral, IFDA, Legislation, Missouri - SB1, Preneed, ReformThe old axiom was that it would take three consecutive legislative sessions to get a preneed bill passed. If Missouri and Illinois are indicators of the current preneed reform movement, the charm may be based not on attempts but actual bills passed by the legislature. The Illinois Comptroller’s proposal for preneed reform, SB1682, is progressing… Continue Reading
Picking Up The Tab For Death Care: Municipalities and Counties
Posted in Missouri - SB1, Preplanning, ReformTaxpayers, through their local governments, have always borne some of the cost of death care. Taxes go toward the maintenance of abandoned cemeteries and the final disposition of the indigent. But as the New York Times reports, the economy is causing more families to abandon the care of their dead to local governments. While many… Continue Reading
How much is too much: Missouri’s Preneed Contract Fee
Posted in Missouri - SB1, Preneed, ReformThe emergency rule that implements Missouri’s $36 per contract fee becomes ‘official’ on October 4th. Missouri funeral directors question whether the fee is too high, and whether it will contribute to the decline in preneed sales. The analysis required for the emergency rule reports that the fee is expected to generate $612,000 of revenues that will… Continue Reading
An August 28th To Do List: Missouri’s Preneed Industry
Posted in Legislation, Missouri - SB1, Preneed, ReformThe Missouri State Board of Embalmers and Funeral Directors meets August 25th to vote on emergency rules that are intended to keep the preneed industry functioning when SB1 goes into effect on August 28th. While numerous issues have been identified to the State Board as deserving of emergency status, four stand out above the rest:… Continue Reading
Notice of Intent? We don’t need no stinkin’ Notice of Intent
Posted in Missouri - SB1, Preneed, ReformCome August 28th, every Missouri funeral home that plans to sell or honor a preneed contract must file a Notice of Intent To Apply. The State Board of Embalmers and Funeral Directors has devised this form to ease the rush that will occur when hundreds of licenses must be obtained. However, many Missouri funeral homes… Continue Reading
Missouri’s Catch 22
Posted in Legislation, Missouri - SB1, NPS/Lincoln, Preneed, ReformMissouri’s Chapter 436 reform law goes into effect on August 28th, and the Missouri State Board of Embalmers and Funeral Directors will have the responsibility of implementing the new changes. However, the State Board is caught in a Catch 22 situation. Many of the changes will have to be implemented through regulations, but the Board… Continue Reading
Missouri’s New Preneed Deposit Requirement
Posted in Preneed, ReformGovernor Nixon signed Senate Bill No. 1 on July 16th, giving Missouri preneed sellers six weeks to prepare for Chapter 436’s new requirements. For trust-funded contracts, one of those requirements will be the deposit of all preneed payments to trust. Section 436.430.2 provides in part: A seller must deposit all payments received on a preneed… Continue Reading
Provisional licenses: Missouri’s August 28th deadline
Posted in Preneed, ReformThe New York Department of Motor Vehicles warns its citizens to plan ahead when it comes to obtaining or renewing their driver’s license. The busiest days of the month are the first and last days of the month. The first day of the month is busy from those who want to beat the rush or… Continue Reading
A Change in Accounting: Missouri’s new preneed law
Posted in Fiduciary, Legislation, Preneed, ReformFor twenty-five years, Missouri funeral directors have had it easy with regard to accounting for consumers’ preneed payments. Chapter 436 required the preneed seller to maintain 80% of the preneed contract sales price in trust. The Missouri law also allowed the preneed seller to withdraw income so long as the 80% threshold was maintained. Consequently,… Continue Reading
Missouri Death Care Legislation: A Whole New Ballgame
Posted in Legislation, Preneed, ReformAt the risk of plagiarizing the Missouri Funeral Directors and Embalmers Association, Missouri preneed funeral sellers, providers, fiduciaries and insurers face a new ballgame that will begin August 29th without a complete set of rules and guidelines. Funeral directors have a general idea where the game will be played, but they’re not quite sure what… Continue Reading
A shotgun wedding: The Comptroller’s elimination of the self-trusted arrangement
Posted in IFDA, Legislation, Preneed, ReformThe battle to reform Illinois’ preneed funeral law was renewed by the Comptroller’s office with the release of his Amendment to Senate Bill 1862. Reform in Illinois will take months, and the final product may differ substantially from the Comptroller’s proposal. However, SB 1862 flags Mr. Hynes’ priorities, and one of those priorities could force… Continue Reading
New York’s Preneed Law: a one-of-a-kind model
Posted in IFDA, Preneed, ReformThe New York preneed law may be the best consumer oriented preneed law in the country (see Page 47 of the AARP Survey). It requires 100% trusting, the accrual of income and limits the permissible investments. The New York State Funeral Directors Association has good reason to be proud of their preneed program. Yes, their preneed… Continue Reading