Preneed: A Pandora's Box of Problems
Regulators 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.…
And so goes the list of New Year resolutions for the Illinois funeral director, with the last being forced on the industry by SB 1682.
Funeral directors and consumers can learn more about the new independent trustee requirements by visiting the Comptroller’s…
With the upcoming new year, Illinois smaller funeral homes will begin searching for a corporate trustee for their preneed funds. With the Legislature’s approval of the Governor’s Amendatory Veto of SB1682, funeral directors lose the authority to serve as fiduciary of their own preneed funds.
The 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…
Governor Quinn’s Cemetery Oversight Task Force worked overtime to get their report done early, and Illinois’ death care industry now faces new questions about reform legislation. It would appear that SB1682 will not be the last shot fired in the battle for death care reform for Illinois.
The full report is available on the Governor’s…
Reform in Illinois inched closer to reality with Governor Quinn’s "amendatory veto" of SB1682. If accepted by the Illinois legislature, the reform bill will become law on January 31, 2010.
However, the Governor is seeking a 30 day window between the deadline for the report due from the Funeral Burial Task Force and SB1682’s effective date. It is doubtful much could be done to change SB1682…
What transpired over the years at Burr Oak Cemetery is an atrocity. Hundreds of grave spaces have been desecrated, causing extreme emotional distress to all families having a loved one buried at the cemetery.
The demand for action has been intense, and Illinois politicians have responded with legislative proposals to improve oversight of cemeteries.
NPS’ sister corporation, Forever Illinois, used the Illinois self trusting provisions to administer preneed funds. As with funeral operators, Senate Bill 1682 will force Illinois cemeteries to seek corporate fiduciaries to administer their preneed and endowed care funds.
Federal and state regulators can not quite agree on how to define the preneed transaction. Federal regulators tend to view the preneed transaction as a current sale of goods and services (where the delivery is deferred until a future date). In contrast, state regulators are increasingly defining the transaction in terms that defer consummation of…
Like the Swine Flu, a preneed virus has been spreading across the Midwest. Looking for a cure, state legislators and regulators have been forming research teams. It all started last summer, with Missouri’s Chapter 436 (funeral) working group and Chapter 214 (cemetery) working group. Now, Illinois is establishing a preneed task force, and Kansas…