Funeral homes frequently allow the assignment of insurance as partial payment towards a trust funded preneed contract, but the manner in which the assignment is made can cause problems for them. Preneed trustees will not accept an insurance policy for a host of reasons. Insurance proceeds paid to a trust are not tax free and
contracts
Preneed Contracts: Where to Apply a Discount
By Bill Stalter on
It is common for a funeral home to offer a discount to a preneed contract purchaser when the sales price is to be paid in full at the time of purchase. However, funeral homes are often inconsistent in how the discount is applied to the preneed contract. We have seen the discount recorded as a…
Missouri’s desk audit: the first look will take the longest
By Bill Stalter on
As discussed in prior posts, the Missouri preneed audit process begins with a notice to the preneed seller for the production of documents and data. After a review is made of the documents, data and the annual reports filed with the State Board, an on-site examination is scheduled with the seller. Most Missouri preneed sellers…
Preneed Reporting: drilling down to each consumer
By Bill Stalter on
For most Illinois funeral homes, March 15th is the due date for the filing of their preneed data with the Comptroller’s office. For those funeral homes that bolted from the IFDA after the master trust melt down, this has been an extremely frustrating process. The majority of funeral homes must file on line, with supporting…
Preneed Contract Forms: Worth The Paper They’re Written On?
By Bill Stalter on
With the exception of a few states, each form of preneed funding has its own statutory requirements. Consequently, different contract forms are required for each method of preneed funding. So, what does this mean for the consumer worried about the safety of funds paid to the funeral home or cemetery.
Among the pecking order of…
Self Reporting: how deep will it go?
By Bill Stalter on
Posted in Missouri - SB1, Preneed
Missouri funeral homes will get their first glimpse of their State Board’s proposal for self reporting for preneed sales. Under the prior law, preneed sellers merely reported the number of contracts sold and their aggregate sales price.
For Missouri regulators to properly assess whether ‘old’ Chapter 436 trusts and joint accounts are properly funded, the…
Setting Up Small Funeral Homes To Fail: Joint Accounts
By Bill Stalter on
Like 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…