UPDATE: Settlement reached over funeral fund shortfall

UPDATED: Wednesday, July 10, 2013 --- 2:50 p.m.

MADISON, Wis. (AP) -- A recently approved settlement requires about 180 funeral homes that sold prepaid funerals through the Wisconsin Funeral Trust to honor those contracts.

More than half of the funeral homes stuck with contracts through the trust have already signed the settlement, which releases them from further liability.

The agreement was approved Monday by Dane County Circuit Judge Peter Anderson.

The trust was placed in receivership last fall when state regulators disclosed it had a shortfall of more than $21 million, a figure that has grown to $24.5 million.

Under the settlement, the trust will reimburse the funeral homes for at least 60 percent of the burials and related costs covered by the prepaid plans. The ultimate amount of the reimbursement will depend on how much money the receiver collects.

Copyright Associated Press 2013


Posted: Sunday, February 17, 2013 -- 6:30 a.m.

MADISON, Wis. (AP) -- The court-appointed receiver of the Wisconsin Funeral Trust says there was substantial wrongdoing in operating the prepaid funeral plan.

John Wirth noted that in a status report to Dane County Circuit Court about the trust, which state investigators say was mismanaged to the toll of millions of dollars for people who paid for funerals in advance.

Wirth wrote litigation will likely occur to recover lost assets.

The Wisconsin State Journal reports Wirth's office has issued 39 subpoenas and reviewed more than 100,000 pages of emails and documents. He wrote the "several hundred" people who held investments and have died since the problems were exposed have, for the most part, had their funerals covered.

However, the funeral homes are getting about 60 cents on the dollar in reimbursement.

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