Category: Uncategorized

Totally Tubular…PrePlan is 35!

We’re going to turn back time! Grab your neon leg warmers, throw on the muscle shirts and acid wash jeans and help us celebrate the decade PrePlan got started! Throughout this year’s NYSFDA Convention we’ll rock out to metal bands, test our 80s knowledge, and toast 35 years of providing The Gold Standard to New York’s families. It’ll be most excellent, so be there or be square!

NYSFDA Annual Convention
August 20-23, 2023
Saratoga Hilton & Saratoga Springs City Center | Saratoga, NY

Where Were You in 1988?

Share your best 80s look! Email megan@nysfda.org a photo of you from 1988 (give or take a year is cool, too). Be sure to include your full name and funeral home name. We’ll put together an awesome slideshow and all entries will be entered to win some choice prizes.

Did You Know?

In 1988…

• It was a leap year.
• The Winter Olympics took place in Calgary, Alberta, Canada.
• The best-selling video game in the U.S. was Ninetendo’s Super Mario Bros. 3.
• The Phantom of the Opera opened on Broadway.
• Adele, Stephen Curry, Russel Wilson, and Emma Stone were just a few celebrities born.

What are some 1988 facts you know? Share them with us, and check back for more.

Here’s to 35 Years!

Since 1988 PrePlan Funeral Trust has served as New York’s preeminent pre-funded funeral trust administrator. As we celebrate our 35th year, we thank you for being a part of our history and continued growth.

The Preneed Trust Accountability Act was a top legislative priority for NYSFDA and PrePlan in 2019 and was signed into law on December 12, 2019. The law establishes a set of financial best practices for preneed administrators. All preneed administrators are now required to undergo an annual audit by a New York State licensed CPA to verify their preneed accounts are being maintained and funds are invested in accordance with law.   

PrePlan had undergone this type of annual audit for numerous years prior to this law and will continue this process. The passage of this law continues to be of utmost importance to ensure that New York State funeral directors are aware of the practices of their selected preneed administrator and their dedication to the adherence of accepted financial practices and compliance of laws. 

In addition, the law includes a provision to allow funeral directors to receive a portion of the 75-basis point administrative fee. PrePlan immediately implemented a Patronage Program to recognize our participants for the administrative time required to create and maintain accounts. We’re currently in our 4th year of recognizing our firms with this program.  

The list below indicates the number of points you will receive based on the cumulative dollar value of your preneed funds invested with PrePlan. 

2023 Patronage Program 

• Up to $2.5M = 1 Basis Points Earned
• $2.5-5M = 5 Basis Points Earned
• $5-20M = 7.5 Basis Points Earned
• $20-50M = 10 Basis Points Earned
• $50-100M = 15 Basis Points Earned
• $100-200M = 20 Basis Points Earned
• $200M+ = 25 Basis Points Earned (maximum allowable by law)

Based on the calendar year 2022, PrePlan will determine participants’ average annual quarterly fund balance. Based on that dollar value, participants will earn up to 25 basis points patronage. The patronage will be distributed via check by April 1, 2023.

Reminder: If you opted out of receiving a Patronage check in the past, you will not receive one this year.  If you would like to change your preference or opt out, please contact us at 800.577.3752 or preplan@preplan.org.

We’re proud to support you and your honorable profession for the past 35 years! Thank you for your trust and confidence. We’re here for you and thanks to our relationship with NYSFDA, will continue to advocate legislatively for you and the families you serve!

When it comes to your consumers’ preneed trust accounts, PrePlan is commited to being 100% compliant with all necessary laws. One of our compliance-related priorities this time of year is management of abandoned and dormant preneed accounts.

Background: In July 2007 NYS Governor Eliot Spitzer signed into law Chapter 279, a measure initiated by NYSFDA to establish a process to treat unused preneed funds. Most financial accounts with no recorded activity for the prior 5 years and/or no valid address are turned over as abandoned property. NYSFDA saw these criteria as troublesome for preneed accounts and sought to prevent the treatment of such accounts to arbitrary time frames. 

What happens/Criteria: At the end of each year, per NYS General Business Law 453, a list is compiled to include all accounts that have been flagged “deceased.” Once identified, PrePlan diligently works on these accounts to determine which funeral home provided services and makes every effort to send the funds to the firm before the need to turn them over as abandoned or dormant. 

Abandoned: Funds in any account where the date of death is more than 3 years will be forwarded one of the following:

• Revocable Account: Office of the New York State Comptroller
• Irrevocable Account: County Department of Social Services where the decedent resided when they died.

Dormant: In addition, funds in any account that has been flagged as a bad address due to the inability of the preneed administrator to obtain a current and correct address for the accountholder for 15 consecutive years and where the accountholder would be 115 years old per the information provided on the original paperwork, will be forwarded to one of the following:

• Revocable Account: Office of the New York State Comptroller, Office of Abandoned Property
• Irrevocable Account: County indigent burial fund where the beneficiary resided when the account was originally established.

Funds from an account deemed abandoned or dormant at year-end will be forwarded to the appropriate entity on or before March 10 of the following year.

We take care of it so you don’t have to. Our knowledgeable and experienced staff serves as your compliance experts, freeing you up to do what you do best – provide compassionate and professional services to your local community. 

In December 2019, the “Preneed Trust Accountability Act” was signed into law. This law requires any entity holding preneed funds – such as banks, credit unions and funeral trusts – to abide by a higher, uniform set of best financial practices. Specifically, these entities have to undergo an annual audit which will provide more financial information to consumers (and funeral homes) about their preneed accounts. Here is a list of requirements:

12. A preneed administrator operating under this section shall conduct an audit of all of its accounts relating to preneed agreements as of the thirty-first of December of each calendar year. The audit shall:
    (a) Be performed by a certified public accountant licensed to practice in New York state;
    (b) Be completed and delivered to the preneed administrator within one hundred twenty days of the end of such calendar year;
    (c) Verify, by way of a representative sample, that the preneed administrator has a signed copy of the agreement for each account;
    (d) Verify, by way of a representative sample, that appropriate income tax  reports have been sent by the preneed administrator to the owner of each account;
    (e) Verify that the investment of all funds for the agreements is in compliance with this section;
    (f) Verify, by an appropriate sampling method, that the earnings on the investments are being properly applied to each account and that the earnings are credited to each account at least monthly;
    (g) Express an opinion that the financial statements of the preneed administrator fairly represent the financial condition of the funds received in all material respects, and that all financial information distributed by the preneed administrator to consumers, funeral homes  or other parties is accurate; and
    (h) Verify that the stated yield credited to the account for that fiscal year, as announced by the preneed administrator, is accurate.

A Step-by-Step Guide

All funeral homes registered to use our website, www.preplan.org, have the ability to print a duplicate tax statement for their consumers. The following is a step-by-step guide:

• Click on the STATEMENT tab
• Click on the TAX STATEMENTS link (located on the left side navigation menu)
• Search for the contract using the available options
• Click the SELECT link next to the contract number of the individual
• Select the YEAR and TYPE OF STATEMENT (Abbreviated: same as mailed to consumer | Full Statement: listing fiduciary and advisory fee information)
• Click GET STATEMENTS to download

Please consult the website after December 31 for more information regarding the date tax statements will become available online. Please note tax statements for the past three (3) years can be viewed or printed. Consumers will also have access to their tax statements once available. Please direct the account holder to the CONSUMER tab above. Upon log-in, they will be able to download their tax statement.

Q&A Grantor Trust Tax Information Statements

Q: The consumer lost their tax statement. Can I have another copy mailed to them?
A: Yes. The funeral home may call or e-mail a PrePlan administrator and we will mail out a second copy. The Funeral Home or consumer may also log-in above to download the tax statement. Click here for step-by-step instructions.

Q: What are the fiduciary and advisory fees listed on the preneed agreement for?
A: As with any trust in New York State, Preplan is permitted by law to expend up to three quarters of one percent of the balance in the fund to provide the necessary services to operate and staff the trust. This is one of the lowest fees in the nation. In addition, a minimal advisory fee is also paid for the expert investment advice given to Preplan for the direct benefit of its customers. These terms are fully disclosed in the preneed customer agreement provided to all consumers.

For any other questions or comments please complete the form below and a PrePlan Administrator will follow up with you.