When a loved one dies, grieving family members and
friends often are confronted with dozens of decisions about the funeral - all
of which must be made quickly and often under great emotional stress. This is something I experienced firsthand last
year with the passing of my beloved 88-year old mother, Dot.
Each year, families struggle with these decisions as
billions of dollars are spent arranging more than two million funerals in the
U.S. alone.
The increasing trend toward pre-need planning - when people
make funeral arrangements in advance - suggests that many consumers want to
compare prices and services so that ultimately, the funeral is not just
meaningful, but also reflects a wise and well-informed purchasing decision.
Some view pre-paid plans as a way to hedge against
inflation as it allows them to lock in today's prices. Others take the step
simply to spare survivors the burden of arranging and paying for a
funeral. Whatever the reason, today about
one in four Americans over 50 have paid in advance for a funeral service,
according to AARP.
While pre-need planning, or pre-paid funeral services,
can spare family and friends difficult decisions and a hefty financial burden,
it is important to know what you are purchasing and how to protect your investment
from abuse.
Recently, our office successfully prosecuted Todd Lauzon
for embezzling approximately $127,000 from people who purchased pre-paid
funeral services through his funeral home.
Between 2002 and
2009, Lauzon, owner and operator of the Lauzon Funeral Home in Woonsocket,
accepted money from individuals for pre-paid funeral services. He later submitted
fraudulent documentation on behalf of the clients, terminating the contracted
services and converting the funds for his own use.
This was a
despicable act of greed by an individual who took advantage of those seeking
his comfort and advice. Families put
their trust and money in Todd Lauzon to take care of their loved ones
foreternity, only to be betrayed and left in the dark during their time of
mourning.
While this case
involves a criminal act by a desperate man, I hope you will use this as an
opportunity to carefully research pre-need services, know the abuses involved
with the services and protect yourself from fraud and abuse.
Among the abuses involved with prepaid funeral plans are:
Lack of portability. The plan can only be used to obtain
goods and services at a single funeral home or cemetery. Often a substantial
penalty is imposed for cancellation.
Unexpected expenses. At times the purchaser's survivors
find that a plan does not cover all funeral and burial expenses, and that an
additional amount is required in addition to the "guaranteed"
expenses.
Marketing abuses. Many sellers of pre-need plans use
high-pressure sales techniques. The seller generally tries to convince the
purchaser to buy more expensive goods and services.
Difficulty in detecting fraud. Because there is
potentially a time lag of years between the purchase of a plan and the
purchaser's death, it’s easier for fraudulent sellers to vanish before their
fraud is uncovered.
Before purchasing a prepaid funeral or burial plan,
consider the following tips:
Be sure to compare prices. Costs for funeral merchandise
and services can vary drastically. The Federal Trade Commission's Funeral Rule
requires itemized cost disclosures from funeral directors, though it does not
cover cemetery sales.
Review the plan carefully. Request a copy of the proposed
contract and financial information about the plan itself. Review all documents
with an attorney, accountant and/or a financial advisor.
Visit the facility. Do not depend on the good faith of
the person selling the plan, especially if it's a door-to-door sales pitch.
Investigate the seller's reputation. Check the company
out with the Better Business Bureau, funeral boards, attorney general's office
or consumer protection agency. If you suspect fraud, act fast. The quicker you
act, the greater the chance you’ll have of regaining any funds you have
invested in a pre-paid plan.
Let your family know where the policy paperwork is
located. If you do decide to purchase pre-paid funeral services, it is
important you discuss this decision with family members, or whomever will be in
charge of making arrangements once you pass, and make them aware of location of
the paperwork.
If pre-paid a funeral doesn't seem right for you,
consider alleviating the burden on your loved ones by at least outlining your
wishes and notifying them of how everything should be paid. In the long line of
adult tasks we each have to do, this is one final detail that will bring relief
at a trying time. Although, it is my sincerest hope that this time for you and
your loved ones is far into the future.
