In a motion to convert the Wisconsin Master Trust from a preneed trust to a liquidating trust, the Receiver outlined to the court why the trust cannot keep its promises to consumers and comply with Wisconsin’s preneed law. Section 445.125 restricts preneed funeral trusts to depository accounts, and CD returns won’t even pay the
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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…
The Wisconsin Settlement Proposal: What is the long term upside?
By Bill Stalter on
Posted in Master Trusts
In a post made June 30th, we discussed how the strategy behind the Wisconsin settlement proposal makes sense. But, a significant percentage of funeral homes have yet to sign on to the settlement. In terms of the Master Trust’s liabilities to consumers, funeral homes with 30% of those contracts are holding out. While both the…
Wisconsin: Breaking the Settlement Logjam
By Bill Stalter on
In prior posts we have documented certain similarities between the old IFDA master trust and the Wisconsin master trust, and our Illinois clients have expressed sympathy for their colleagues to the north. But, key differences exist between the two master trusts, and the recent settlement agreement offered to Wisconsin funeral homes is an indication that…
Illinois Tax Blues: when a loss is not a loss
By Bill Stalter on
Posted in IFDA
For many Illinois funeral homes, April 15th served as a bitter reminder of Merrill Lynch and the financial losses suffered by the IFDA master trust. The final Merrill Lynch settlements (approximately $41 million) were received in 2012, and taxes had to be paid on those funds this past tax day. Funeral directors have questioned how…
Wisconsin Cemeteries: Who needs a fiduciary?
By Bill Stalter on
Posted in Cemeteries
Here is proof that readership of newspapers is going down.
The Milwaukee Journal Sentinel called a few weeks back about a Wisconsin legislative bill that sought investment freedom for cemetery trust funds. With the legislative battle that was waged a year ago in Wisconsin, we had expected the bill might represent a renewed …
An Investment Strategy: the Man without a Plan
By Bill Stalter on
If you haven’t noticed, there has been some turnover among the associations’ preneed fund managers. With the threat of additional litigation in Wisconsin, this trend could continue. But not all of the turnover has been as publicized as what we have seen in Illinois and Wisconsin. After 20 years at the helm, Merrill Lynch recently…
Master Trusts: Finding the Rails
By Bill Stalter on
Posted in Fiduciary, Guaranteed, IFDA, Master Trusts, Missouri - SB1, Non-guaranteed, Preneed, Trust Funded
Both the Memorial Business Journal and the Funeral Service Insider commented last week on the Milwaukee Journal Sentinel’s February 7th article regarding the former executive director of the Wisconsin Funeral Directors Association. Several issues were raised that should be included in future industry debate, and in particular, I would agree with Mr. Isard’s questions whether…
Too Literal of an Interpretation: Mississippi and Preneed Taxes
By Bill Stalter on
The Mississippi Secretary of State seems to be taking a very proactive approach to the regulation of preneed and perpetual care funds. Over the course of the last few years, the Regulation and Enforcement Division of the Secretary of State’s office has averaged an enforcement proceeding per month. We were curious what type of enforcement…