Create a Great Funeral Day is October 30th 2010. Create a Great Funeral Day has been around a couple of years. It is very important to plan your funeral but not to prepay.
For the USA, Another great resource is Death For Beginners by Karen Jones. Rest in Peace Insiders tips to the Low Cost Less Stress Funeral will also help.
There is a New Book coming out that i have read and recommend A Good Goodbye:Funeral Planning for Those Who Don’t Plan to Die
Funeral Industry|Funeral News | Funeral Blog By Your Funeral Guy
- 48 Articles About Pre-planning and Avoiding Surprises with Your Loved One’s Final Costs (termlifeinsurance.org)
Folks with Preneed policies at the National Prearranged Services Funeral Home in Missouri may have lost it all. It is a fact that all the monies in prepaid funerals at Washington Forever Funeral Home in Missouri are gone. There is the possiblity that some customers of Washington Forever Funeral Home may get some credits from two area Kansas City Funeral Homes Charter Funerals and Speaks Legacy Chapels, but the details are a bit vague.
It was stated by the Missouri Attorney General that folks who bought a preneed policy at the Independence, Missouri Funeral Home will have to get their funeral somewhere else. The total estimates in the NPS Preneed Funeral Scams are between 600 Million and 1 billion dollars. This is significant enough warning for anyone not to put their funeral cost money into a prepaid funeral
The Missouri attorney general’s office Tuesday issued recommendations for those who purchased prepaid funeral plans from a now-closed Independence funeral home.
Consumers who purchased a plan from Mount Washington Forever Funeral Home will need to make new arrangements at another funeral home, according to the office.
Last week, two Kansas City area funeral homes firms, Charter Funerals and Speaks Family Legacy Chapels, offered to issue possible credits to those customers.
Anyone still paying on such plans purchased through Mount Washington Forever, the attorney general release said, “should stop making payments.”
Funeral Industry|Funeral News Funeral Blog by Your Funeral Guy
An Austin. Texas news station has advised against buying a prepaid funeral as away of Saving on Funeral Cost. Prepaying a Funeral may on the surface sound like a good idea, but recent history has found it to be quite risky.
One Reason it is quite risky is that Funeral Directors lately have been found to take the money.
This has been revealed in three major Funeral Director Scandals.
1. The National Prearranged Services Scandal -2008
2. The Illinois Funeral Directors Association Preneed Ponzi Scheme- 2009
3. The California Funeral Directors Association Scandal(California Master Trust) 2010
On the surface, it seems like a good idea to pay today’s price for final arrangements.
Since funeral prices have been going up by more than the rate of inflation, it might seem like a wise choice to pre-pay for your funeral arrangements.
Unfortunately, the prepaid funeral business, like other industries, is not without its share of fraud and deceit.
The average cost of a funeral in today’s dollars is about $10,000, and that cost is increasing every year, so you can see why consumers in Texas have contracts worth $3 billion.
Funeral Industry|Funeral News| Funeral Blog by Your Funeral Guy
Your Funeral Guy First reported on the California Funeral Directors Association(CFDA) on January 7th, 2010. Click Here for the report.
Now that the scandal has received local coverage in California we can report on this matter more fully because my research has been verified by a State Audit. The scandal is quite similar to the Illinois Funeral Directors Association Scandal. Right now the dollar amount is less than The IFDA Preneed Trust Scandal. That could change.
Early audits in the IFDA Preneed trust scandal did not reveal the extent of the problem. Later on Gross Misappropriation of the Folks Money was discovered. The current situation involves the California Master Trust.
Now that there is a second maor Funeral directors association scandal the national media may take note.
Do Not Hold your Breath.
The audit was the first to find systematic problems with a funeral trust fund(California), Wallinder said. Typically, auditors find problems involving individual funeral homes or trusts set up for individual consumers, he said.
In this case, the department ordered the trust’s governing board to return more than $2 million that was spent on lobbying and conventions for the California Funeral Directors Association. Some of the money already has been paid back, auditors said.
The audit also found the trust failed to pay at least $1.6 million it owed to consumers, their estates or the state treasury in cases where funeral homes went out of business or families paid for funeral services because they didn’t know their loved one had a prepaid plan.
Funeral industry|Funeral News|Funeral Blog by Your Funeral Guy
Funeral Homes selling Preened as an investment are lying. To prepay a funeral today, “LOCKING IN TODAY’S PRICES FOR YOUR FUNERAL TOMORROW” is a lie. The current economic environment in the world makes that statement a falsehood. No Investment vehicle can be guaranteed that since the Wall Street Crash of September 2008.
Firstly, Prepaid funerals or(preneed) has always been a purchase of funeral goods and services.In the past and many times the funds are placed by the funeral home, funeral director or insurance company in a special bank account.
Depending on the pre need Contract and state regulations the funds used to purchase sometimes can be placed in an investment vehicle. The Track record of indivudual funeral homes and others doing this though is not good.
When this has happened there are examples of bad outcomes—the local funeral home in the news, funeral associations(example- IFDA Illinois Funeral Directors Association preneed trust ponzi scheme) and funeral insurance companies(-Example-NPS-National Prearranged Services)
Funeral industry|Funeral News Funeral Blog by Your Funeral Guy
Preneed or Prepaid Funerals go by many names such as End of life insurance, funeral insurance, preneed, prepaid funerals etc. The National Prearranged Services(NPS) Funeral Scam, the IFDA(Illinois Funreral Directors Association) Preneed Trust Funeral Scam, and Weekly incidents of funeral directors running off with the folks funeral money has all contributed to this development
Snippet From the WSJ.
Now, in the wake of recent allegations of fraud and mismanagement in this multibillion-dollar industry, state and federal lawmakers are trying to crack down on abuses in so-called prepaid funeral plans.
“Consumer advocates have been urging states to enact stricter regulations of prepaid plans for years,” says Sally Hurme, a senior project manager who specializes in consumer education at AARP, the Washington-based advocacy group. “This is a step in the right direction.”
This should shoot an arrow in the heart of those who have have participated in preneed irregularities, fraud and scams
Funeral industry|Funeral News|Funeral blog by Your Funeral Guy
There are many ongoing investigations in the Illinois Funeral Directors Association(IFDA) preneed scandal. Lawsuits are hung up in the courts. It is being reported that reform legislation is held up in the Illinois legislature.
In the meantime, there is no telling how long consumers will have to wait while the matter still is under investigation. It could be months or years before the Graces and thousands of Illinois residents who prepaid for funerals know where millions of missing trust fund dollars went.
How can funeral directors steal Millions and it take years for the matter to be resolved? Why does it take drawn out investigations to resolve pre need scandal.( It took decades to find out where the National Prearranged Services dollars went) As these things drag on funeral directors continue steal out of trust funds, and take unauthorized loans as Illinois Funeral Directors Association Board Members did.
Time will go on and more Preneed Insurance Scandals will occur. Major players will move on and assume positions of leadership-often times with no resolution of misdeeds.(Look at Randall L Earl a major player in the IFDA Ponzi Scheme who may very soon be president of The National Funeral Directors Association, NFDA).
Funeral Industry|Funeral News| Funeral Blog by Your Funeral Guy.
The lesson here is clearly to avoid prepaying for a funeral.
pic IFDA logo e-mailed to yourfuneralguy by the Illinois Funeral Directors Association.
A couple in Michigan Embezzled(misappropriated) $257,000 in Preneed Funds from the families they served at a funeral home. Just as the leaders in the Illinois Iuneral Directors Association Ponzi Scheme have not been brought to justice, these two appear to be getting off with restitution and probation.
When funeral providers take people’s preneed funeral funds there should be punishment. Otherwise Funeral Directors will continue to take peoples funeral money.
There are the big cases like that of National Prearranged Services.(NPS) or the Illinois Funeral Directors Association. Every week in the press there are local funeral providers who misappropriate or steal money-many times out of preneed or prepaid funerals. This is one reason for mistrust of funeral directors.
Christopher and Nancy Ziomek, who operated the now-closed Ziomek Funeral Home on Wayne Road in Livonia, entered the pleas in Wayne County Circuit Court to one count of embezzlement of $50,000 or more, but less than $100,000. The offense is punishable by up to 15 years in prison.
Funeral Industry|Funeral News|Funeral Blog by Your Funeral Guy
Funerals .org has outlined a funeral complaint about preneed insurance. Incredibly insurance premiums total more than twice the cost of a funeral. The Funeral industry needs to stand up and take note of this complaint.
This presents us with a concrete example of the Dangers of funeral preneed. Your Funeral Guy has seen first hand the horrors of the preneed company mentioned below and has refused to work for this funeral preneed firm firm
Another example of the financial dangers of prepaid funerals. This Iowa couple was shocked to discover they’d have to pay almost $28,000 in insurance premiums for funerals that would cost only $14,000. Read their complaint-
After sending more than $11,000 to Homesteaders Insurance over the past four years, we recently decided to see what the exact balance due would be. The funeral home told us to call the insurance company. We were shocked to learn from Homesteaders that we hadbeen locked into a 10-year payment plan at the rate of $230.83 a month. At that rate, we would have to pay $27,699.60, about double of what the actual funerals would cost.
Funeral Industry|Funeral News|Funeral Funeral Blog by Your Funeral Guy