Funeral Service & Cremation 
Alliance of Wisconsin

Making things right for funeral consumers

27 Sep 2012 1:08 PM | Anonymous
Krause Funeral Homes and many other funeral homes are not members of the Wisconsin Funeral Directors Association and have never used the WFDA Pre-Need Master Trust. I hope to provide some clarity on the unfortunate situation regarding the solvency of the fund for prepaid funerals.

Many funeral homes have used insurance or bank trusts to protect their consumers. These consumers and funeral homes are well-protected by government-insured funding products and have nothing to worry about. The WFDA trust was provided and administered by the association and offered by some funeral homes as another way to set aside their clients' funds for future funerals. It hoped to take advantage of aggressive investing and returns to offset rising funeral costs.

Just as investing in the stock market, the WFDA trust was invested without the government safeguards and guarantees of banks or insurance companies. A $21 million shortfall is now a reality for the funeral homes that chose that funding option.

So who really stands to lose? Well, many funeral homes guarantee their services and merchandise. The consumers who have prefunded their funerals with one of these firms will be made whole, and their funerals will operate without any change in what they purchased. The funeral homes will have to take the loss because they invested poorly. The fact that the deaths of the pre-arranged clients will happen over the next 20 years will lessen the financial impact to many of those funeral homes.

To read the full article, please click here.
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