Preneed continues to have a polarizing, and confusing, impact on both the death care industry and the public. For some, preneed is synonymous with abuse and fraud. But despite well-publicized problems with preneed, the American public continues to prepay when planning for their funerals and burials.
However, we at the Preneed Resource Company believe preneed must change to meet the needs of the public, to better protect the consumer, and to recognize the roles clergy, hospices and others will play in transition planning.
We currently serve funeral homes, cemeteries and financial institutions that place a premium on compliance, and who seek ideas and concepts that better serve their clients. We also strive to provide an independent and informed perspective to the preneed debate through contributions to our sponsor's compliance blog (www.deathcarelaw.com).
SERVICES FOR FUNERAL HOMES AND CEMETERIES...
Many funeral homes made the decision to offer preneed because families asked for it (and because the competition offered preneed). For the most part, funeral homes patterned their preneed contracts on what the competition offered, and on the requirements of state law. For more than a generation, the consumer has been offered a single choice: the guaranteed preneed contract. Today, consumers are demanding choices and rights that go beyond applicable state law.
Cemeteries have also been forced by consumer demand to offer preneed. Initially, cemetery preneed meant the sale of a burial space. However, competition with the funeral home over merchandise sales forced most cemeteries to expand their preneed programs. For both consumers and regulators, the cemetery preneed program blurred the distinction between cemeteries and funeral homes. Consequently, cemeteries face many of the same challenges from tomorrow’s consumer.
Compliance Audits An assessment of preneed contract forms, trust instruments, administration procedures and tax reporting.
Administration Supplemental administration to address compliance deficiencies or to facilitate enhanced trusting arrangements.
Tax Reporting Tax administration and preparation of Section 685 QFT returns.
Documents Draft preneed contract forms and trust instruments that permit flexibility in responding to consumer demands.
Consultations Consultations with death care companies and their trustee with regard to all applicable compliance requirements.
Consumer Services Monthly invoicing and account balance reporting.
SERVICES FOR BANKS...
Our goal is to foster a stable, profitable relationship that is not only compliant, but also protects the preneed purchaser, and results in a satisfied death care client. Understanding the requirements imposed on death care trusts by state and Federal laws, and by the Internal Revenue Code, is the key to success with the death care client. [Click here to learn more about our Bank Services]
The funeral home/cemetery and the bank/trustee share certain common goals: the productive management of death care trust funds, compliance with Federal, state and tax laws, and a stable and efficient relationship.
However, most banks lack the internal expertise required to ensure compliance with state death care laws and the special tax rules that are unique to the death care industry. Similarly, death care companies do not always appreciate the requirements imposed by Federal laws with regard to fiduciary functions. PRC provides the expertise and administration that each needs.
PRC Preneed Resource Company