Death Care Compliance Law

Death Care Compliance Law

Preneed: A Pandora's Box of Problems

William Stalter is the founder of Stalter Legal Services and the Preneed Resource Company. Bill focuses his law practice on preneed and death care compliance, serving banks, funeral homes, crematories, and cemeteries. He has written multiple published articles

Tag Archives: pre-need

Nebraska Preneed Legislation – Clarifying Trust Liability

Posted in Compliance, Exams/audits, Investments, Reporting, Trust Funded
On January 30th, the Nebraska Legislature will conduct a hearing on a bill to fix a problem with the state’s preneed funeral law.  The Burial Pre-Need Sale Act was originally passed in 1986, when preneed trusts invested almost exclusively in government bonds.  The intent of the Nebraska law was to require the preneed seller (that… Continue Reading

Preneed Fund Manager: Is your O&E coverage current?

Posted in Fiduciary, Master Trusts, Preneed
Many state preneed regulators share the point of view that the payments made toward a preneed contract belong to the consumer until the prearranged funeral is provided. This perspective was adopted by the California Attorney General in its Eighth Cause of Action brought against the California Funeral Directors Association and its Master Trust. The AG… Continue Reading

Early Audit Warning: Fees and Assessments

Posted in Compliance, Exams/audits, Funeral, Preneed
It seems paradoxical to see preneed regulators ramping up audit programs while state budgets are being slashed to the bone. Yet, several I-70 corridor states will soon implement new preneed audit programs. Missouri’s preneed funeral audits will be funded out of a combination of license fees and preneed contract fees. Missouri’s new cemetery law did… Continue Reading

Non-guaranteed preneed: time to review the duties

Posted in Compliance, Funeral, Preneed
The financial fallout from the failures of NPS and IFDA regarding compliance with state and federal laws has accelerated the decision of many funeral directors to switch to the non-guaranteed preneed contract. That non-guaranteed contract represents a fundamental change in the relationship that is established between the consumer, the funeral home and the preneed fiduciary. The… Continue Reading

Illinois: the initial insurance premium is coming due

Posted in Fiduciary, Funeral, IFDA, Preneed
The Comptroller’s Office mailed out letters to funeral homes last week advising how to report the first contribution to the Pre-Need Funeral Consumer Protection Fund. The letter tracks the first few paragraphs of the “Senate Bill 1682 Information” page from the Comptroller’s website. The funeral home letter includes two documents: a Fee Payment Record and… Continue Reading

Investment Restrictions: who’s guaranty?

Posted in IFDA, Investments, Preneed, Reform
The Springfield Journal-Register recently reported that Illinois’ Cemetery Oversight Task Force made a recommendation to restrict preneed trusts to investing in government-backed securities.   While its difficult to actually find that recommendation in the Task Force’s report, it is not a bad idea for the consumers who purchased a non-guaranteed preneed contract.  However, that type of restriction would hinder funeral homes that offer guaranteed contracts. The… Continue Reading

March Madness: Kansas cemetery legislation

Posted in Cemeteries, Legislation, Preneed, Reform
With two of the nation’s top ten college basketball teams, Kansans are exhibiting clear symptoms of March Madness. With Topeka located between Lawrence and Manhattan, bipartisanship may be tested as tensions mount this week with the Big 12 tournament and the NCAA seedings announcement on Sunday. When Kansas legislators resume their meetings the week of… Continue Reading

The First Week Under SB1

Posted in Funeral, Legislation, Missouri - SB1, Preneed
The first week under the new preneed law was a confusing one for the Missouri funeral industry. SB1 has many drafting conflicts and ambiguities, and that has give rise to different interpretations from the Attorney General’s Office, the State Board of Embalmers and Funeral Directors, and the death care industry. The State Board and the… Continue Reading