A short three and a half years ago, the funeral industry reeled from the collapse of National Prearranged Services and the emerging story of the Illinois Master Trust. The NFDA was slow to respond to the crisis, and when it did, this blog joined the criticism. Fast forward to September 2012, and the NFDA responds
Addressing the NPS aftermath: a hard sell
By Bill Stalter on
Per capita, Missouri funeral directors were hit hardest by the collapse of National Prearranged Services. And those funeral directors who suffered the greatest losses continue to demand help from the State of Missouri. Although Missouri re-wrote its preneed law just 3 years ago, the Legislature begins hearings today on whether more legislation is …
Taxes and the Bounty Hunter
By Bill Stalter on
Posted in Preneed, Preneed Tax
When news of the indictment of 6 National Prearranged Service officers was reported last November, many newspapers picked up the AP version that included a quote from the Internal Revenue Service criminal investigator. The fact is that the Federal investigation of NPS involves investigators from the IRS, the FBI and the U.S. Postal Inspection Service.
The thorn that will not go away: NPS and Missouri’s Governor
By Bill Stalter on
Posted in Missouri - SB1, NPS/Lincoln
Yesterday, the St. Louis Post Dispatch reported on the federal indictments handed down against six NPS officials. The article includes two statements that hint at the legal strategies to be employed by NPS and federal prosecutors.
"We have anticipated this (indictment) for a number of years, and he is looking forward to finally confronting these…
Mt. Washington: More NPS Fallout
By Bill Stalter on
Posted in Cemeteries, NPS/Lincoln
Almost a year to the date after SB1 was signed into law, one of the NPS sister companies was forced to close its doors. The recent Kansas City Star article about Mt. Washington Forever Funeral Home and Cemetery describes a situation that confused and disheartened the families who purchased Mt. Washington preneed contracts. The Missouri…
The Preneed Subsidy
By Bill Stalter on
Posted in Preneed
While the reasons are open to debate, it is common knowledge within the funeral industry that a small percentage of consumers cancel their preneed contracts. Consequently, some funeral directors tend to view their preneed block of business with a degree of certainty. Performance of the contracts, and recognition of the revenues, seems to be just…
Misinformation from the highest source
By Bill Stalter on
Posted in Preneed, Preplanning
The Wall Street Journal has long been viewed as a leading source of business and investment news. But last weekend, the WSJ ran a short article on preneed, and demonstrated its lack of understanding of the transaction.
The article attempts to characterize preneed as an investment, and then explores issues such as cash surrender…
First Things First: is the money there?
By Bill Stalter on
Posted in Missouri - SB1
Implementing new regulatory requirements is a difficult and thankless job. Businesses hate change when it comes to government interference, and (most) regulators understand this. Accordingly, regulators typically prefer to implement incremental changes. In contrast to other industries, regulatory changes have been less frequent within the death care industry because legislators and regulators don’t understand the…
Regulating out of context: Missouri and investment advisors
By Bill Stalter on
Posted in Missouri - SB1
Over the next year, Missouri will examine the various flaws of SB1. One of those flaws concerns the independent investment advisor and the ‘fix’ meant to preclude conflicts of interest.
Preneed trusts have a poor track record in terms of investment performance. Trustees often fail to appreciate the key factors that impact investment strategies for…
Missouri Preneed Fiduciaries and Big Brother
By Bill Stalter on
One criticism of Missouri’s prior preneed law was that the Attorney General’s office was dependent upon the State Board to refer complaints for legal enforcement. If the State Board didn’t refer a Chapter 436 violation, the AG’s only enforcement alternative was to pursue an action under Missouri’s Merchandising Practices Act (Chapter 407). During the 2008…