The basic services fee also may include overhead from various aspects of your business operation, such as the parking lot, reception and arrangements rooms, and other common areas. It also may include insurance, staff salaries, taxes, and fees that you must pay. Alternatively, instead of including all overhead in your basic services fee, you can spread the overhead charges across the various individual goods and services you offer. As a third alternative, you can combine the first two approaches: spread some portion of the overhead charges across the individual items, while including the remainder of such charges in your basic services fee. Note : These are the only ways to recoup overhead costs. In addition, if this basic services fee is non-declinable, the fee must include any charges for overhead that have not been allocated to the other goods and services. You have two options for listing your basic services fee on the General Price List: ● Option 1: You may list a separate price for the basic services of the funeral director and staff, together with a list of the principal services provided for the price and the required disclosures. If consumers cannot decline this fee, you should include in this separate price all charges for “unallocated overhead” — that is, all overhead not distributed among the other items listed on the GPL. ● Option 2 : Instead of charging a separate basic services fee, you may include the fee in your casket prices. With this alternative, you must include the appropriate disclosure on the General Price List, together with the prices for the individual caskets or with the casket price range (if you have a separate Casket Price List). This fee also must include all charges for the recovery of unallocated overhead. As the disclosure indicates, you must specify the amount of the basic services fee that is included in the price of the caskets. If the customer provides a casket obtained elsewhere, that same basic services fee must be added to the total cost of the arrangements selected. The Rule expressly states that the basic services fee is the only non-declinable fee allowed for services, facilities, or unallocated overhead, unless state or local law requires otherwise. Other than the basic services fee, you cannot charge any separate fee for overhead. Charging a second non-declinable fee, such as a “basic facilities fee” or a “casket handling fee,” in addition to the basic services fee would violate the Rule. Moreover, you cannot list fees for “additional services” of the funeral director and staff if those fees should be included in the basic services fee or in one of the other items required to be listed on the GPL. Example : You have a non-declinable fee for the basic services of funeral director and staff. You also list the following fee on your General Price List: Additional Services of the Funeral Director and Staff. This charge includes: (a) coordinating and directing funeral ceremony, (b) paying competitive salaries to employees, (c) providing 24-hour on-call service to each family, (d) maintaining funeral service licensing, and (e) complying with federal and state codes and regulations. This fee for additional services violates the Rule. All of the charges listed should be included elsewhere on the GPL. You should include charge (a) for coordinating and directing the funeral ceremony in the separate charge for a funeral ceremony. The other items, (b) through (e), relate to basic overhead. You either should include such charges in the basic services fee or allocate these costs among all the items listed on the GPL. Items 6-16 You must list the following items separately with their respective prices. The charge for each item should include all service fees and any equipment or facility charges for providing that particular good or service. (You will not, however, include any portion of the “basic services fee,” discussed above, in any of these items.)
For forwarding of remains and receiving remains , the GPL should list one price for each of these items and describe all services you will provide for the quoted price. The prices for these items should include all charges relating to each service, including any basic services fee and any facilities or equipment fees. If you offer direct cremations , your GPL must state a price range, make the required disclosure about the availability of an alternative container, and list each of the following options within the range: ● A price for direct cremation if the consumer provides the casket or container; and ● A price for each direct cremation you offer with an alternative container. Note : If you offer direct cremations, the Rule requires you to offer at least one alternative container. If you offer direct cremations with more than one alternative container, separately list a description of each container and its price. Your GPL must describe the services you provide for each direct cremation you offer, such as direct cremation with a memorial service or direct cremation with scattering of ashes. If you include the cost of cremation in your direct cremation price, include the words “and cremation” in your GPL’s description of what you provide for direct cremation. However, if you use a crematory that someone else owns, you may treat the cremation charge as a cash advance item. In that case: ● Do not include the words “and cremation” in your GPL’s description of what you provide for direct cremation, and ● Clearly explain that the added crematory charge will be estimated or itemized in the Statement of Funeral Goods and Services Selected. ● For immediate burials , you must give a price range, together with each of the following separate options within the range: ○ One price where the purchaser provides the casket; and ○ A separate price for each form of immediate burial offered where you provide a casket or alternative container. (You are not required to make an alternative container available for this purpose. However, you may choose to offer this option.) You also must describe in the GPL the services and container provided for each price. If the immediate burial option is available with any casket on your Casket Price List, the General Price List can simply state the price of the service and refer the customer to the Casket Price List for casket prices. Item 5: Basic Services of Funeral Director and Staff (and Overhead) The charge for services of funeral director and staff is a fee for the basic services that you furnish in arranging any funeral. This is the “basic services fee” that is discussed in the Required Disclosures section. If the customer cannot decline this fee, a disclosure is required. This basic services fee should include services that are common to virtually all forms of disposition or arrangements that you offer, such as conducting the arrangements conference, securing the necessary permits, preparing the notices, sheltering of remains, and coordinating the arrangements with the cemetery, crematory, or other third parties. The basic services fee should not include charges related to other items that must be separately listed on the General Price List and that the customer may decline to purchase. Note : You should include any charges for the ordinary sheltering of remains by your funeral home in this basic services fee. However, you can list a separate charge for sheltering of remains if: 1. A significant percentage of your customers do not use the funeral home to hold the remains at any point, or 2. You receive a request to hold the remains for an unusually long period of time.
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EliteLearning.com/Funeral
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