Preneed: A Pandora's Box of Problems
Everyone complains about continuing education, but occasionally the concept is reinforced when a timely program provides needed insight. Such should be the case when the Missouri Funeral Directors and Embalmers Association sponsors a class on the tax consequences of servicing an NPS contract.
Funeral directors need to understand that they do not necessarily incur a tax…
One of the many issues facing regulators in the Clayton Smart debacle was the surrender of thousands of Forethought life insurance policies by a Forest Hill preneed trustee. New light will probably be shed on this issue with revelations that Robert Nelms and Clayton Smart may each have been using the same financial management company: Security…
Whether it is because of state law restrictions or preneed purchaser demographics, death care trusts have unique requirements when it comes to investments. Consequently, it is fairly common for a death care trust to utilize an investment advisor who has experienced with the industry. However, the deductibility of the fees paid to outside advisors by…
The National Funeral Directors Association has taken the lead in getting legislation introduced to eliminate the dollar cap imposed on qualified funeral trusts. While I hope the NFDA succeeds, it won’t be without a fight from the IRS.
As the death care industry inches towards the non-guaranteed preneed transaction, the IRS will express its concerns over abusive trusts. …