Mort Admin Exam 3 Flashcards
funeral arrangements made in advance of need. It was started in 20’s or 30’s where it was sold out of barber shops.
PRE-NEED
no provisions for funding or prepayment
PRE-PLANNED
includes provisions for funding or prepayment
PRE-FUNDED
PRE-NEED FUNERAL PROCEDURES REASONS:
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
oAlso called spend down
oIncludes pre-funded arrangements
oExempt from personal assets
TYPES OF PRE-NEED CONTRACTS:
REVOCABLE CONTRACT
IRRECOVABLE CONTRACT
GUARANTEED CONTRACT
NON-GUARANTEED CONTRACT
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.
REVOCABLE CONTRACT
Contract cannot be terminated or cancelled prior to death of beneficiary.
IRRECOVABLE CONTRACT
funeral home guarantees that services and merchandise will be provided at need for an amount not exceeding originally contract amount plus any accruals (interest); regardless of cost of providing services and merchandise upon death
GUARANTEED CONTRACT
funeral home only agrees that amount pre-paid plus any accruals (interest) will be credited to balance due. Funeral price will be whatever current price is for services and merchandise at time of death
NON-GUARANTEED CONTRACT
PRE-NEED ARRANGEMENT CONFERENCE:
Presentation and discussion of service and merchandise
Use of pictures, catalogs and computers can be used for locations other than funeral home
State and federal regulations
Licensing laws
Funeral service licensee
Licensed insurance agent
FTC funeral rule still applies
o Presentation of price list
o Permission to embalm
o Mandatory disclosuresALTERATION OF PRE-FUNDED CONTRACTS:
Minor changes in merchandise or services:
o No effect on guaranteed contract price
Major changes
o Voids a guaranteed contract
Unavailability of services or merchandise
Most allow substitution of similar or higher quality services or merchandise
i.e. – Mrs. Jones selects a 16 gauge steel protective casket. She does in 2020. Casket company supplying funeral home has closed. Funeral home con substitute another casket with similar characteristics and quality.
WISHES OF DECEDENT –vs- WISHES OF FUNERAL PLANNER:
Legal effect or 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 i.e. – decedent wanted a traditional funeral service. She purchased a complete pre-funded funeral contract. When she died her daughter selected direct cremation. Daughter was given remaining contract funds.
Disagreements among family members:
o Case may go to court and judge will consider wishes of decedent and also the effect(s) on surviving family members
o Rights and duties of spouse or next of kin
Related to right and duty of final disposition
o Most survivors will honor wishes of decedent
o Not legally bound to in all states
EFFECTS OF THIRD-PARTY BENEFICIARY CONTRACT:
Parents of a mentally impaired adult 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.
Account established by one individual to be held for the benefit of another
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
TRUST ACCOUNT:
TYPES OF TRUST ACCOUNTS:
INDIVIDUAL TRUST ACCOUNT
MASTER TRUST ACCOUNT
INSURANCE
SAVINGS/PASSBOOK ACCOUNT
separate account for each pre-funded funeral arrangements
INDIVIDUAL TRUST ACCOUNT
monies from all pre-funded arrangements placed in one account with individual record for each account. Provides a higher return on investment (interest) and is allowed by law.
MASTER TRUST ACCOUNT
Similar to purchasing automobile or life insurance policy. It can be paid in full or monthly premiums may be allowed until the contract price is paid in full. It is typically funeral specific, with funeral home as beneficiary.
INSURANCE
Similar to a trust account. The monies from all pre-funded arrangements are placed in one account and it draws interest. The interest pays inflationary increases in funeral prices.
SAVINGS/PASSBOOK ACCOUNT
reduction of a dead human body to inorganic bone fragments by intense heat in a specifically designed retort or chamber
CREMATION
furnace or retort for cremating dead human bodies. The facility which houses the cremation chamber
CREMATORY/CREMATORIUM
burning chamber in a crematory made from refractory bricks
RETORT
the bone fragments remaining after the cremation process. (Not ashes)
CREMATED REMAINS
the mechanical device used to perform the actual cremation process
CREMATION CHAMBER
the container required to transport the human remains to the crematory. It could be the casket used at the funeral or a special rigid leak resistant combustible box designed for cremation. The container will be destroyed during the cremation process.
CREMATION CONTAINER
the final resting place for the cremated remains
FINAL DISPOSITION
the body of deceased
HUMAN REMAINS
Placing the cremated remains in an urn or other container in preparation for final disposition. Placing the urn or container in its final resting place.
INTURNMENT
the reduction of the cremated remains to an unidentifiable consistency to facilitate inturnment and or to make the cremated remains acceptable for scattering. Depending on the pulverization devise used, very small bone fragments may or may not remain after processing.
PULVERATION PROCESS
CREMATION STATISTICS:
National average about 34-35%, Increases each year
Highest rate in coastal and western states and Florida
REASON FOR GROWTH:
Public acceptance and higher level of education
Relocation of elderly to the “sunbelt” states
Immigrants who prefer cremation
ARRANGING FOR CREMATION: CONSIDERATIONS:
Removal of medical devices; it may explode and destroy the retort
o Electronic pacemaker
o Radioactive implants
Positive identification of remains is “RECOMMENDED”
o By a family member
o Signed affidavit
o Prior to transporting to crematory
Adhere to families wishes
Items to be removed or cremated
o Jewelry etc.
Sign form listing items
Adhere to state and local laws
Cremation container
Co-mingling remains
Disposition of cremainsFORMS:
Authorization and release forms
o Signed by person with right and duty of disposition
o Informs family of cremation process
o Protects funeral home and crematory
File death certificate
Secure forms required by state law
o Cremation permit
o Disposition permit
Texas requirements
o Death certificate
o Burial transit permit
o Cremation authorization formCREMATION CONTAINERS:
Transport decedent to crematory
o Casket
o Alternative container (fiberboard, wood, etc.
Environmentally safe and friendly
Cremator safe and friendly
For the cremated remains
o Urn
o Temporary –vs- permanent
Receipt for obtaining cremains
o State name of authorized individual
o During arrangement conferenceact of placing cremains in an urn. According to CANA (Cremation Association of North America) it is placing cremains in a niche or grave
INURNMENT
CREMATION SERVICES:
Cremation is only a method of final disposition!!
Cremation has the most numerous service options available
rites held at time of disposition of human remains with body present
TRADITIONAL
service held with the final disposition of the cremated remains
GRAVESIDE
with a procession from funeral service to the crematory
COMMITTAL AT CEMETERY
as appropriate and allowed by law
SCATTERING CREMATED REMAINS
body directly to crematory
DIRECT CREMATION
family requests – no limits except law
OTHER ALTERNATIVES
with or without cremains present. With or without funeral home personnel
MEMORIAL SERVICES
appropriate and helpful acts of counseling or helping that comes after the funeral and final disposition. Also called Post Funeral Follow-Up.
AFTERCARE
TYPES OF AFTERCARE
Family’s request
Contact by funeral home personnel (Funeral director who made & conducted funeral
arrangements or other trained individual
Formal or organized activities
Seminars
Grief support groups
Holiday activities
AFTERCARE OPTIONAL SERVICE:
Not all funeral homes provide any type of aftercare services
Viewed by some as growth opportunity
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
