FREQUENTLY ASKED QUESTIONS
Q: Is the money placed in the trust secure?
A: All funds placed in the CFF system are held in financial instruments that are guaranteed by the Federal Deposit Insurance Corporation (FDIC) or directly by the United States Government in United States Treasury bonds, unless state law requires otherwise. Further, they are held under a master trust agreement at Citibank N.A.
Q: Does a new trust require a lot of paperwork?
A: No. Just one simple form creates the trust. One may decide to complete an itemization statement, which will identify the service and merchandise the purchaser desires. A client funeral home may create a new trust online at www.CFFHomes.com.
Q: How do I file a claim and how long does it take?
A: The claim is generally processed and a check is mailed within 24 hours. You may also set up an electronic fund transfer for claim payments. Claims generally received by 2 PM (Eastern) are normally processed on the same day.
Q: Is CFF approved by the State Board?
A: While it is not the responsibility of the Board to approve or disapprove of preneed Programs, CFF maintains legal representation in every state in which we offer our trust service. We review all applicable state laws to ensure compliance and we present our program to the proper agencies, including Social Services for their comments.
Q: What type of payment option or plan does CFF offer?
A: Payment plans may be as flexible or as stringent as desired by the funeral director and/or his or her client. For instance, a client may have a $5,000.00 funeral planned and pay the funeral director $2,000.00 at the time of the prearrangement. They may pay the remaining $3,000.00 if they can afford it. It should be noted that price guarantees are not usually in effect until the contract is paid in full. CFF also offers monthly or quarterly payment slips. We offer automatic check withdrawals if the client signs an authorization letter.
Q: Is there a minimum dollar amount to start a trust?
A: No. If the funeral director wants to accept five or ten dollars to start a trust, CFF will set it up.
Q: What kind of reports does CFF provide?
A: CFF sends monthly statements to each funeral home in our system. These statements show each client's beginning balance, additional deposits, interest earned, any credits, fees and ending balance. These statements also show new trusts established during the month as well as claims paid. These reports, along with detailed trust information are also available at www.CFFHomes.com.
Q: Are there tax issues with the trusts?
A: Yes. CFF will prepare and file all necessary tax forms with the IRS. We also mail K-1's to the clients with a cover letter explaining their responsibilities, if any.
Q: Do you have customer support?
A: Absolutely. Our knowledgeable staff is there to answer any questions that pertain to preneed and how it relates to Social Service, Medicaid, Veterans Benefits, etc. For example, if your client is going through an application or a redetermination and needs a confirmation letter we will fax it directly to the case worker or nursing home - just pick up the phone and ask! You will always get a live person when you call CFF. No automated messages.
Q: As a funeral director, if I become unhappy and want to withdraw my accounts, would there be any penalties?
A: No. There are no penalties. Depending on the financial marketplace, and the size of the withdrawal, there could be liquidation costs.