A lawsuit has been filed in the California Master Trust Situation. At issue is who owns a preneed Contract? Does the Funeral Home own the contract? Do the people who control the trust? Does the Funeral consumer.
Sacramento, California–On November 10, 2010, the Funeral Directors Service Corporation (“FDSC”) filed a lawsuit in Sacramento County Superior Court against the Department of Consumer Affairs, Cemetery and Funeral Bureau (“the Bureau”). The lawsuit asks the Court to resolve disputed findings contained in an audit report issued on March 18, 2010, following the Bureau’s audit of the California Master Trust.
Mark Kuhn, President of FDSC, stated: “The California Master Trust, which has been in business since 1985, meets the needs of families who wish to set aside funds to pay for funerals in advance, alleviating anxiety and decision-making at the time of a loved one’s death. The Bureau’s audit findings are damaging to the Trust’s reputation and its ability to serve the consumers whose investments are safeguarded within the Trust.”
Kuhn further commented: “We have made extensive efforts to resolve our dispute with the Bureau regarding these audit findings, but the Bureau has threatened to take action against the Trust and the licenses of the individual funeral establishments who participate in the Trust. We are seeking the Court’s assistance in determining that the Bureau’s audit findings are wrong and unenforceable. We believe the audit is based on improper interpretations by the Bureau of the applicable laws and regulations governing California pre-need funeral trusts.”
For further information, contact Grace J. Bergen of Knox, Lemmon, Anapolsky & Schrimp, LLP, attorneys for FDSC.
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