Total Return Trust Administration The Preneed Resource Company differs from other preneed administrators in that we provide market value based administration, or “Total Return Trust Accounting”.  Other preneed administrators continue to sell the same accounting services that they provided your Dad.   Fifteen years ago, interest rates exceeded the funeral home’s internal cost increases, and so trustees purchased long term bonds and held them to maturity.  Preneed trustees used this type of income return investment policy for decades.  An income investment policy worked great for preneed administrators because all that was required of them was to track consumer deposits and accrued income.  That type of administration is called tax cost basis accounting, which reports the “book value” of assets.  Book value would be used for the value of trust assets and individual consumer accounts.   Years of low bond yields forced preneed trustees to switch from income return investing to total return investing.  With that change came the diversification of preneed trusts, and the long term investing in growth equities.  But, preneed accounting systems haven’t kept up with the change to total return investing.  Unrealized market growth, a crucial element of total return investing, cannot be passed through to individual preneed accounts by tax cost basis accounting.   A total return trust may enjoy a net investment return of 4%, but a net income return of only 1%.   Tax cost basis accounting precludes the funeral home from reaping the benefits of a productive, diversified preneed trust.   Click the following hyperlink to review our blog posts on the issues related to Total Return Trusts vs Income Return Trusts. Preneed Program Options The Preneed Resource Company is also unique in that we establish a separate database for each funeral home client.  One size does not fit all.  We also know that today’s economic environment dictates that funeral homes offer consumers more options and flexibility.  So, our programming evolves with those needs.   That is why our contract forms and administration allow the funeral operator to sell guaranteed, non-guaranteed, or a combination of such arrangements. Contract Forms and Upgrade/Downgrade Forms The Preneed Resource Company will supply the funeral home with state compliant preneed contract forms and trust agreements.  What funeral home doesn’t have those Public Administrator contracts where irregular payments are made?  These transactions result in confusing paperwork, and auditor questions.  We have special forms and procedures to avoid such confusion (and questions).  Audit Responses Many of our clients maintain other forms of preneed funding, and we assist them with annual reports and audit responses regarding those accounts.  Our experience with the state regulators allows us to provide these services more efficiently that than the client’s accountant or attorney. 
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Preneed Resource Company 5350 W. 94th Terr, Suite 202 Prairie Village, KS 66207 Tel: 913-378-9922 Tel: 800-449-0030 Fax: 913-378-9924