Flashcards in 2nd Quarter- MORTUARY ADMINISTRATION Exam 3 Deck (44):
Funeral arrangements made in advance of need
No provisions for funding or prepayment
Includes provisions for funding and payment
reasons for preneed
Make individual wishes known to family.
Make intelligent and informed decisions with less emotion.
Relieve survivors of financial burden.
Reduce personal assets for Medicaid eligibility.
Includes pre-funded arrangements.
Exempt from personal assets.
types of pre-need contracts
Contract which may be terminated by purchaser at any time prior to death of the beneficiary with a refund of monies paid on the contract as prescribed by state law.
contract which cannot be terminated or canceled prior to death of the beneficiary
Funeral home guarantees that services and merchandise will be provided at need for an amount not exceeding original contract amount plus any accruals (interest).
Regardless of cost of providing services and merchandise upon death
Funeral home only agrees that amount prepaid plus any accruals (interest) will be credited to balance due. Funeral price will be whatever current price is for service and merchandise at time of death
locations where pre-need can be done
Home / Funeral home / other location
State and federal regulations
Licensing laws for pre-need
Funeral service licensee
Licensed insurance agent
Federal trade commission (FTC) funeral rules.
Presentation of price lists
Permission to embalm
Alteration of pre-funded contracts
1. Minor changes in merchandise or services / No effect on guaranteed contract price.
2. Major changes - Void a guaranteed contract
3. Unavailability of services or merchandise. / Most allow substitution of similar or higher quality service or merchandise.
Wishes of decedent vs. wishes of funeral planner
Legal effect of pre-funded contract once death has occurred.
Most states allow spouse or next-of-kin to change or cancel pre-funded contract and purchase merchandise and service of their choice.
Disagreement among family members.
Case may go to court.
Judge will consider wishes of decedent.
Effect on surviving family member.
Right to right and duty of final disposition.
Most survivors will honor wishes of decedent.
Not legally bound in all states.
Parents of a mentally impaired adult child make pre-funded arrangements for a traditional funeral service.
Contract beneficiary is the mentally impaired adult
What will happen to this contract at time of death?
Contract will be honored, although contract was made by the child’s parents.
They are not the direct contract beneficiary upon the child’s death.
Types of funding
Account established by one individual to be held for the benefit of another. This creates a fiduciary responsibility
As a method of payment of funeral expenses, money paid to a funeral home for future services is placed in an account with the funeral home as trustee for the benefit of another.
Separate account for each pre-funded funeral arrangement.
Individual trust accounts
Monies for all pre-funded arrangements placed in one account. Individual record for each account. Provides higher return on investment (interest) as allowed by law
master trust accounts
Similar to purchasing automobile or life insurance policy
Policy can be paid in full or monthly premiums may be allowed until the contract price is paid in full
Similar to a trust account.
Monies from all pre-funded arrangements placed in one account.
Account draws interest.
Interest pays inflationary increases in funeral prices.
reduction of a dead human body to inorganic bone fragments by intense heat in a specially designed retort or chamber.
furnace or retort for cremating dead human bodies. Building that houses a retort
Latin for crematory
burning chamber in a crematory
National average of cremation is about (what percentage) Increases each year. The highest rate is in
coastal states and Florida
Reason for growth for cremation
Higher level of education
Relocation of elderly to “sunbelt” states.
Immigrants who prefer cremation.
considerations for cremation
-- Removal of medical device - Explode and destroy the retort
(Electronic pacemaker / radioactive implants)
--Positive identification of remains - by family member
--Sign affidavit - Prior to transporting to crematory
--Adhere to family wishes
--Items to be removed or cremate( Sign form listing items)
--Adhere to state and local laws
--use of Cremation container
---Disposition of cremains
--Authorization and release forms
(Signed by person with right and duty of disposition) The form informs family of cremation process and protects funeral home and crematory
√File death certificate
√Secure forms required by state law
Cremation permit / Disposition permit
TEXAS requires – death certificate, burial transmit permit, cremation authorization form
when transporting decedent to crematory what are the acceptable forms of containers
a casket or alternative container (fiberboard, wood, etc.) Anything that is “environmentally safe and friendly” and “crematory safe and friendly”
act of placing cremains in an urn
According to CANA (Cremation Association of North America) the definition of inurnment is -
placing cremains in niche or grave
What is the key thing to remember about receipt of cremated remains?
You need to make sure you know to whom the cremated remains are to be released.
Make sure you state name of authorized individual during arrangement conference.
True or False
Cremation is only a method of final disposition?
Rites held at the time of disposition of human remains with body present.
traditional funeral service
Service held with the final disposition of the cremated remains if cremains will be buried or placed in a niche
committal service with a procession from the funeral service to the crematory.
Committal at the crematory
a service related to cremation, as appropriate, allowed by law
Scattering cremated and remains
without the body present – w/ or w/o funeral home staff.
appropriate and helpful acts of counseling/helping that comes after the funeral and final disposition. Also called Post funeral follow-up
• Done at Family’s request
Contacted by funeral home personnel, either Funeral director who made and conducted funeral arrangements or other trained individual
types of aftercare
Formal or organized after funeral activities
Grief support groups
True or False? Funeral home personnel should be trained to do aftercare - by qualified aftercare educators and professionals?
FYI- aftercare as an optional service
Not all funeral homes provide any type of aftercare service.
Some view it as growth opportunity.
It provides additional service to the family.
Excellent “word-of-mouth’ advertising.
Logical extension of basic funeral home services.
“Captive audience” - Family and other survivors
Opportunity to educate your community and general public.
Purpose and value of modern funeral service