KRDO13 Investigates: After Davis Mortuary case, experts explain how to protect prepaid funeral funds
COLORADO SPRINGS, Colo. (KRDO) - One week after the arrest of the co-owners of Davis Mortuary in Pueblo, questions remain about what happened to money some families paid years in advance for funeral services.
Former Pueblo County Coroner Brian Cotter and his brother, Chris Cotter, are the co-owners of Davis Mortuary. Both of the brothers are facing over 160 criminal charges each. They are accused of hiding dozens of human remains in a secret room inside their funeral home.
According to investigators, another part of the criminal case involves allegations that money from some pre-need funeral contracts was misappropriated.
A pre-need funeral contract allows someone to arrange and pay for funeral goods or services before they are needed. People often purchase them to reduce the financial and logistical burden on loved ones after their death.
According to the Colorado Division of Insurance, pre-need funeral contracts in Colorado can either be funded through a life insurance policy or annuity, or they may be held directly with a funeral home, depending on the type of arrangement.
Scott Behan, owner of Colorado Springs-based Rocky Mountain Providers, which specializes in insurance-funded pre-need funeral planning, says insurance-funded contracts work differently than paying a funeral home directly.
"When you use a funeral home trust fund, you're paying a funeral home directly and they actually have control of your monies," Behan said. "Whereas insurance funding... your monies are 100% protected. If you relocate, if the funeral home goes out of business, or the funeral home is sold, your resources are protected."
Estate planning attorney Kevin Hancock, who owns The Law Office of Kevin R. Hancock, LLC in Colorado Springs, told KRDO13 Investigates that consumers should take time to research providers before signing any agreement.
Hancock recommends comparing multiple providers, asking questions about how the money will be managed, and considering all available funding options before making a decision. He also said many people don't realize how expensive funeral services can be or how much planning ahead can ease the burden on surviving family members.
If someone chooses to work directly with a funeral home, the Colorado Division of Insurance recommends asking several questions before signing a contract, including:
- Who will hold the money?
- Can the contract be transferred if you move or choose another funeral home?
- What happens if you cancel the contract?
- What refund rights are available?
The agency also recommends keeping copies of all paperwork in a safe place.
KRDO13 Investigates reached out to attorneys representing Brian and Chris Cotter for comment on the theft allegations but had not received a response as of publication.
KRDO13 Investigates was the first to uncover the allegations against Brian and Chris Cotter. To read all of our previous reporting on this case, click here.
If you have information you believe the public needs to know, KRDO13 Investigates wants to hear from you. Tips can be submitted by emailing 13Investigates@krdo.com.
Stay up to date with the latest local news, sports, and investigations by downloading the KRDO13 app. Click here to download it from the Apple App Store. Android users can download it from Google Play here.
