Pub. 3 2024 Issue 2

review of formaldehyde under the Toxic Substance Control Act. Members of Montana’s congressional delegation were generally supportive of our legislative requests, and we are extremely hopeful that the Consensual Donation Act will be signed into law this year. Photos of the D.C. trip are included in this edition for your viewing. Issue and policy advocacy is one of the Association’s most valued member benefits. MFDA strongly encourages any MFDA member who has an interest in attending next year’s Washington, D.C. Advocacy Summit to pursue that interest. We would love to have more Montanans attend the congressional meetings and advocate for our mutual industry goals. Turning now to another, but equally important member benefit — that being the Montana Funeral Trust. The Montana Funeral Trust continues to be a strong and, in many ways, a unique program for MFDA’s member funeral homes. The Master Trust program is now approaching its 40th year with more than $18 million in pre-need funeral trust assets held for over 4,651 individuals! MFDA, First Interstate Bank and the NY Funeral Directors Association continue to work in a close partnership to assure the continuation of a high-quality program and to work quickly through any issues that might arise. The “hot topic” continues to be interest rates. As you all know, for years, the Federal Reserve focused on maintaining extremely low interest rates, making it difficult to offer high-interest income to your individual preneed consumers. However, as you have experienced for yourself, the Fed has, in the last two years, authorized interest rates to grow, with the interest rate range ending January of 2024 between 5.25% and 5.50%. This increase in interest rates has made the Trust a much more attractive and competitive product for your homes and your customers. And, though, Montana State law limits the allowable pre-need investments to only those backed by the U.S. Government. The current NET interest rate on the Master Trust assets is 2.07%, after payment of investment, administrative and tax reporting fees, as well as the income paid to MFDA. This rate may be lower than those earned historically, namely in the 1980s and 1990s, but still allows your consumers to earn interest rates in excess of CDs and bank savings accounts. www.timelesstraditionsgifts.com If we look beyond the interest rate issue for a moment and think about the Master Trust’s high-quality bond portfolio, there are two primary benefits to participating in the Trusts. One is the stability of income, and the other is the safety of your consumers. Your pre-need contract owners are in no way exposed to the often gut-wrenching gyrations that can come with investing in stocks. For most of the individuals you work with, they are more than willing to accept lower income in exchange for the safety and security associated with U.S. government bonds. Second, by using the Trust, you are able to address your consumers’ concerns about safety and protection by reminding them that 100% of their funds are held in trust. The NY Funeral Directors Association, as Trustee, is a large, well-respected organization with the duty to protect the assets and make sure they are ultimately available for their intended purpose. MFDA’s board and officers continue to be grateful for the opportunity to work with MFDA’s member funeral homes on this valuable member benefit. The many relationships developed over the years as a result of the MFDA Trust are important not only to us but also to Montana’s families. Please feel free to reach out to me or Terri James if you have any questions about the Trust or how to participate in the same. We would love to help you be a part of the program. In closing, let me once again express my appreciation for the confidence the Association has shown in me and my staff by bringing us on to serve the industry. We have always done our best to help the Association and its members, like you, succeed. Have a great spring, and we look forward to seeing you in Missoula as we share, in what Mr. Maclean called, the “stories of life.” Directors Digest | 7

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