As we enter the final quarter of 2024, our industry is facing both economic challenges and some encouraging signs on the horizon. Total revenue across the deathcare industry is seeing a slight year-over-year decline, however, we ’re also seeing positive trends in employment and wages, indicating a stabilization in the workforce and improved job satisfaction within our industry. These developments are crucial as we finish out the year on a high note and head into 2025 with optimism.Looking ahead to Q4, forecasts show marginal revenue improvements in the deathcare space. This cautious optimism is rooted in the resilience and adaptability our industry has demonstrated. Firms that will come out ahead will be those that take strategic action and embrace market changes. Firms that proactively adapt to shifting consumer preferences, leverage technology and diversify their service offerings are positioning themselves to thrive. Whether it’s offering celebration of life personalization, streamlining operations with technology or fine-tuning your preneed trusts to optimize profitability, forward-thinking approaches will be critical. As we navigate these challenges together, let’s close the book on 2024 knowing we are collectively well poised for growth. Sincerely,  Bill Williams President and CEO, Funeral Services, Inc. |
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Tips on Preparing Irrevocable Preneed Contracts in Florida By Lauren Pettine, Senior Associate and Henry Thompson, Associate, WRW Legal, PLLC Many complaints received by the Florida Division of Funeral, Cemetery and Consumer Services against licensees and the many violations noted by inspectors involve preneed contracts - either failure to complete preneed contracts properly or to handle them correctly. Irrevocable preneed contracts have some specific requirements which licensees must be aware of. Purchaser and Beneficiary: Irrevocable preneed contracts have specific requirements since consumers may only purchase irrevocable preneed contracts to qualify for public assistance as described in Chapter 497, Florida Statutes. The irrevocable preneed contract is often purchased as part of a "spend down" to qualify for that public assistance for the Beneficiary of the contract. So who should be identified as the Purchaser on the irrevocable preneed contract? In 2016, the Florida legislature passed amendments to Section 497.459, Florida Statutes. Those amendments stated in part that the Purchaser must be the Beneficiary for a Purchaser to make the preneed contract irrevocable. As an example, if you have an individual acting as the Power of Attorney for the Beneficiary, who signs the contract, that individual is acting on behalf of the Beneficiary. As such, the Purchaser and Beneficiary would be the same person. The Purchaser would not be the individual who is Power of Attorney for the Beneficiary for the purposes of the preneed contract. Changes to Irrevocable Preneed Contracts: Can changes be made to an irrevocable preneed contract? The answer, somewhat surprisingly, is yes. During the life of an irrevocable preneed contract beneficiary, an irrevocable contract cannot be cancelled, changed, or assigned to another funeral home. Contracts cannot be upgraded or downgraded if made irrevocable prior to the death of the beneficiary. However, after death, a legally authorized person for the decedent may change or alter selections made for decedent’s arrangements. Section 497.460, Florida Statutes states that if the legally authorized person does not desire the "funeral merchandise or service or burial merchandise or service contracted for" at the time of death, the funds can be disbursed as required. If the changes result in additional expenses, the legally authorized person making arrangements will owe those funds. If the changes result in overage from the funds in trust related to the beneficiary’s contract, those excess funds must be remitted to the Medical Care Trust Fund administered by Florida’s Agency for Health Care Administration. |
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Q3 2024 Economic Update As Q3 drew to a close, we saw a complex economic landscape. Despite concerns about inflation and interest rates, the U.S. economy has shown resilience, with GDP growth exceeding expectations in the second quarter. The labor market remains strong, with unemployment rates holding steady at 3.8%. Inflation has moderated but remains above the Federal Reserve’s 2% target, prompting continued vigilance from policymakers. The Fed has maintained its hawkish stance, with potential for further rate hikes if necessary. In the equity market, large-cap growth stocks, particularly in the technology sector, have outperformed, driving much of the market’s gains. However, this narrow market leadership has raised concerns about market breadth. Looking ahead, geopolitical tensions, particularly between the U.S. and China, and the upcoming presidential election add uncertainty to the economic outlook. Investors are advised to maintain a diversified portfolio and focus on long-term financial goals. If you have questions about the financial world, please reach out to Michael Faherty, Executive Vice President, Client Relations, at mfaherty@argenttrust.com or (504) 291-8870. |
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Here are brief summaries of several stories featuring FSI: How to Increase Your Preneed Sales in the Era of Cremations The cremation rate is on a steady climb with no signs of slowing down. So how can firms leverage this trend to drive additional preneed sales? There are opportunities for firms that adapt quickly and strategically, as highlighted in our recent column in Southern Funeral Director. Learn more here. Funeral Homes of the Future: How May Tomorrow’s Funeral Directors Transform Their Businesses? Between evolutions in technology and consumer preferences, the funeral industry is sure to look considerably different tomorrow than it does today. How will funeral directors know what changes are worthwhile? In a recent issue of FCCFA’s The Chronicle magazine, we highlight how Funeral Directors may adapt to shifting winds. Read more here. It’s Time for a Preneed Program Tune-up Like most areas of your firm’s business, your preneed program will benefit from a tune-up to maximize the revenue and income potential of trust assets. Preneed programs are not a ‘set it and forget it ’ tool. For guidance on where to start, we shared insights with American Funeral Director in a recent issue. Read more here. |
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By requiring several forms of verification, it significantly reduces the risk of unauthorized access while still allowing authorized users convenient and quick access to files. The easy to implement and user-friendly tool offers peace of mind in the era of increasing cyber threats. To enroll in Multi-Factor Authentication, please contact our Client Services team at 1-800-749-1340 or clientservices@fsitrust.com. |
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For more than four decades, our Client Services team at FSI has provided exceptional service. Led by Meiko Whitfield, Vice President of Client Services, our team leverages decades of expertise to keep your records straight, connect you with the right answers every time you ask and show you how to use the tools that help make your job easier. When you reach out to our team, you can expect support with:
The bottom line is that we ’re here to help you navigate questions big and small - allowing you to sleep better at night. When you call, Meiko, Wendy, Kerrie, Judi and Jessica answer. Every time. |
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