In Alabama, the only state without any preneed laws, legislators are considering a requirement that funeral homes place 70 percent of most prepaid funds into trust. But there has been considerable lobbying to allow companies to replace trust funds with surety bonds, state officials say. The current rule does not explicitly cover preneed sales, but the FTC may bring the predeath market and cemeteries under its umbrella. The Senate's Special Committee on Aging held hearings on the subject last year and, while no action was taken, members discussed whether to put together model rules for states to use to tighten preneed regulation. The National Funeral Directors Association, comprised mostly of independently owned homes, has recommended giving preneed purchasers the right to a refund within seven days of signing a contract, and called for disclosure measures to apprise consumers of where their money is being kept.
Consumer groups question whether such guidelines go far enough.
Meanwhile, the largest death care companies, motivated by new accounting rules, have refocused their preneed sales strategy.