A few weeks ago, we posted on the Wisconsin Master Trust and the smaller operator’s need for legislation. The Milwaukee Journal Sentinel reported this past week that the Association filed a motion with the court seeking to suspend the investment returns promised to consumers. The Association is quoted as having told the court that the
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The Wisconsin Master Trust: Between a Rock and a Hard Place
By Bill Stalter on
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…
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…
Wisconsin: Where is the Love?
By Bill Stalter on
Posted in Funeral, Master Trusts
When news of the Wisconsin receivership was made public, I anticipated some signs of support from other state associations. The strength of a professional relationship can be measured by the support given subsequent to a public indictment. But, when that support comes in the form of hackneyed advice, the accused is left to wonder about…
One Too Many Guarantees: Wisconsin and the SEC
By Bill Stalter on
When news that the Wisconsin Funeral Directors Association and its master trust had been put into receivership, I anticipated that the association may have fallen victim to a perfect storm: when an antiquated preneed law collides with a volatile investment market. But, subsequent news accounts are painting a bleak picture of poor planning and…