The American Way of Death Revisited - Jessica Mitford [148]
Irrevocable plans can almost always be transferred from one funeral home to another, but few morticians will offer this information. When Mrs. H. moved in, the nursing home insisted that funeral arrangements be made without delay. Her daughter—without any consultation—arranged for a $4,000-plus funeral at the only funeral home in town, written up in an irrevocable funeral contract and paid for from Mrs. H.’s own checking account. It had been difficult for Mrs. H. to manage her affairs—arthritis had taken away her sense of independence and control, and she’d depended on her daughter to write her checks, among other things. But she knew that the $4,000 funeral was not to her liking. With the help of a Senior Law Project attorney, she was able to transfer her “irrevocable” funeral plan to another funeral home. After writing up an irrevocable agreement for a $695 cremation, the new funeral director instructed the bank to refund the difference.
In short, an “irrevocable” trust does not require you to give up all rights to control your investment. If a funeral director attempts to take undue advantage of your situation, you may have legal recourse.
In most cases, shielding assets in order to qualify for government benefits is the only sound reason for paying for a funeral in advance. The only way to do that is with an irrevocable trust. But keep in mind that even though your trust account is irrevocable, you will be responsible for declaring the interest income because it will ultimately be used for your benefit. Mrs. M., in South Carolina, was irate: “The funeral home sent me a statement showing how much interest I’m supposed to declare on my income tax return. I don’t have that money anymore, and when I die the funeral home will get it all. Why should I have to pay taxes?”
20
New Hope for the Dead
At the June 1996 Nashville gathering of nonprofit funeral and memorial societies, Lisa Carlson—the executive director of the Funeral and Memorial Societies of America (FAMSA)—issued a call for social activism:
If every mortuary in the country offered fair prices and a wide range of options, did not indulge in manipulation of the grieving, did not hide the low-cost caskets, did not dominate the funeral boards with self-serving regulations, did not limit the options for caring for your own dead in certain states or who can sell caskets, there would be no reason for our societies. We are the only national group monitoring the funeral industry for consumers. We have an obligation to protect the public at large, not just our members, especially given the high rate of noncompliance with the Funeral Rule.
The following year—with the cooperation of other consumer groups including AARP and the Consumer Federation of America—FAMSA petitioned the FTC to reopen the Funeral Rule for new amendments. Key objectives will be: to outlaw the nondeclinable fee, to legitimize private viewing of unembalmed bodies, to specify costs in connection with body donation, and to bring cemeteries under the coverage of the Funeral Rule. The situation will demand close attention from consumers, given the predictable response from the industry—which is happy, indeed, with the rule as it stands.
Who are these meddlesome do-gooders willing to take on a well-heeled and powerful industry? “Unitarians, Quakers, eggheads, and old farts who are nothing more than a middleman for the industry and a cheap funeral,” was one glib characterization. Carlson cheerfully acknowledged that she qualifies for “at least three of those four.”
The practice of group planning for funeral arrangements started early in the century in the Farm Grange organization in the Northwestern United States. From there the idea spread to the cities, mainly under church leadership.