Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Search BankersOnline
using Google









Alphabet Soup


Banker Store

Bankers Info Ntwk


Career Connect

Learning Connect

Guru Central


Ask a Guru

Bankers Threads

Contact Us

Give Us Feedback


About Our Sponsors

About Us

Print Friendly! Email This Article! Discuss NOW!

Funeral Trust Accounts
by John Burnett, BOL Guru
Guru Bios

Question: Although I have read through most of the information on the site referring to funeral trust accounts, there is always another question that comes up. We have a branch that wants to have the funeral home sign a letter authorizing all the CDs in place of having to sign a signature card for each one. Would any problems be created if we adopted this practice? In addition, any other suggestions regarding a good procedure for opening funeral trust accounts would be appreciated.

Answer: Your best advice will come from the organization responsible for regulating funeral homes in your state. (A call to your state's funeral directors association might be the easiest way to identify it.)

Pre-need burial trusts are like campaign funds or IOLTA accounts; it's someone else who is the regulated party, not the bank. It is up to the funeral home to open the account correctly; they are the ones who are in trouble if a mistake is made.

Each state has different laws. In some, the regulatory agencies actually visit the funeral home to audit compliance. In others, they require reports on all preneed burial contracts so they can confirm existence of the funds.

In this context, "branch variations" within your bank are not appropriate. Find out what the funeral directors in your state are supposed to do and try to get them to do it correctly.

First published on 1/6/03

Privacy Policy    Disclaimer   Recommend This Site !   Contact Us

BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.