Who pays for the funeral?
Understandably, people are becoming increasingly concerned about balancing their wishes to give their loved ones a ‘send-off’ that they deserve, and covering the costs of the funeral. In this article, Hannah Davis, solicitor in our Private Client team, explains who the responsibility of planning a funeral might fall to and the associated financial responsibilities.;
Responsibility
The deceased may have left details of their funeral wishes, either in their Will or separately, and whilst these wishes are not legally binding, families and friends are usually keen to follow them to ensure that the funeral is what their loved one would have wanted.
In usual circumstances, it is the responsibility of the personal representatives i.e. the executor or proposed administrator of the estate to arrange the funeral. This responsibility may be delegated or left to the deceased’s family or close friends, if they are not the same person as the personal representative.
This is often the case when a professional executor such as a solicitor or accountant has been appointed as executor, and the deceased has family or friends who would prefer to make the funeral arrangements themselves.
Funeral plan
The first thing to consider when arranging the funeral is whether or not there is a pre-paid funeral plan in place. Approximately 180,000 people purchased a pre-paid funeral plan in 2024, with an estimated total of 1.75 million people in the UK having one in place.
It is important to check the terms of the funeral plan prior to making any arrangements, as some items may incur additional costs. The deceased may have nominated a specific funeral director to manage the funeral and the deceased may have even provided specific instructions for the funeral and the service.
Who pays
The costs of a funeral will usually be paid from the estate of the deceased, provided there are sufficient funds available and are treated as the “first debt of the estate”.
When organising a funeral, it is important to understand that the deceased’s assets might not be immediately accessible to cover funeral expenses. This may create a temporary financial burden to the person arranging the funeral, as they may be out of pocket to cover the funeral director’s invoice.
However, if you are aware that the deceased has a a bank account with a balance which exceeds the funeral invoice, the bank will usually arrange to settle the invoice before a grant of representation has been obtained. Banks, building societies or investment companies usually have their own procedures in place in relation to paying funeral invoices, and should be contacted in advance of arranging the funeral.
Another consideration is whether the person responsible for arranging the funeral could be entitled to a Funeral Expenses Payment from the government.
Where the person dealing with the funeral is in receipt of certain benefits, and they meet the requirements specified, they may qualify for the Funeral Expenses Payment which can assist with burial and cremation fees, travel expenses and other funeral costs. Each application is considered on a case-by-case basis, and the amount available will depend on the specific circumstances of the matter. Further details can be found here.
Whilst incurred after the death, the funeral costs are treated as a “date of death” liability by HMRC, and provided they are reasonable and proportionate, they can offset against the assets of the estate and can in turn reduce the overall value of the estate as at the date of the death, which is the relevant value when considering whether there might be an Inheritance Tax liability.
Public Health Funerals
If there is no ‘next of kin’, or if friends and family are unable or unwilling to make the necessary arrangements for a funeral, the local authority may organise a funeral and this is known as a “public health funeral”.
Public health funerals are designed to protect public health and are to ensure that all individuals are treated with dignity and respect in death, regardless of their personal circumstances. Local authorities have a statutory duty to arrange a burial or cremation where no alternative arrangements are being made, however, the legislation does not define how this duty should be carried out, meaning there is a great deal of flexibility in how these types of funerals are arranged and delivered.
Often, the funerals are simple, with little to no personal touches such as flowers, obituaries and orders of service or transport for the family. Family members and friends will also have very little control over what the local authority decides upon, even when it comes to the date and time that the funeral takes place.
Get in touch
Sydney Mitchell’s Private Client team has a wealth of experience in wills and estate planning. For help with your matter please get in touch on 0121 746 3360 or submit an online enquiry form and we will get back to you shortly.
