Preneed: A Pandora's Box of Problems
The Missouri Preneed Trust: What were you thinking?
Investment markets are down, and preneed trusts are hurting. But one Missouri preneed trust is probably hurting more than others. When the Missouri Funeral Directors and Embalmers Association cheerfully announced the acquisition of the Missouri Preneed Trust program by its own MFT, we were shocked. The Missouri…
We are continuing with our posts to correct the misstatements made by the MFDEA in its May 24th video on Missouri law and preneed portability. At minute 28:50 of the video, the association’s general counsel states that with regard to the transfer of preneed contracts, a successor seller must execute a State Board affidavit…
A few weeks ago the Missouri Embalmers and Funeral Directors Association posted a YouTube video explaining their take on preneed portability under Missouri law. The MFDEA frequently posts videos in response to industry queries, and for the association to spend 37 minutes on portability suggests that it is fielding numerous requests from MFT providers. The…
In preceding posts, we have outlined recommendations to the Missouri State Board of Embalmers and Funeral Directors regarding the preneed examination process and record keeping requirements. While our correspondence was not included on the Board’s December 13th agenda, the Board entertained a motion to amend the agenda to include our correspondence on the afternoon…
In Paragraphs 35 through 38 of the Complaint filed against the Missouri Funeral Trust, the State Board of Embalmers and Funeral Directors seek discipline against MFT for its inability to produce copies of contracts sold by a funeral home that transferred its trust to MFT. The original seller funeral home apparently amended several of its…
Paragraph 26c of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records regarding the insurance policies for insurance funded preneed contracts….” We suspect this claim may be directed at a practice where the MFT trustee has accommodated funeral homes that have…
Paragraph 26b of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records that explain why the principal held in trust exceeds the face value of the preneed contract associated with that account…” We anticipate that this claim is considering the contract…
The next issue in our review of the MFT Complaint concerns the State Board allegation that the MFT fails to maintain adequate records to document how much consumers have paid and that the proper amounts were deposited to trust. In subsequent sections of the Complaint, the State Board asserts that the MFT in some instances…
This post will look at the first allegation made by the Missouri State Board of Embalmers and Funeral Directors against the Missouri Funeral Trust: MFT does not create or maintain any records of its activities as a preneed seller. In subsequent paragraphs of the Complaint, the State Board will also challenge the adequacy of those…
We start our review of the case against the Missouri Funeral Trust with the procedural issues raised in the State Board’s Complaint and MFT’s Answer. From the Answer, we learn that the preneed financial examination was initiated on January 20, 2011. But, it was almost three years before an examination report was sent by…