Budgeting for a funeral
Funerals aren’t pleasant to think about. However, they do cost money, and it may be worth budgeting for in advance to ensure that you don’t leave your loved ones in debt, or to ensure that you can afford it should you have to face the unfortunate loss of a loved one.
Funeral costs can cover a number of things, from funeral director and local authority fees to third-party costs. The latter can include charges for cremation or burial, transportation, venue hire fees and other costs related to the ceremony itself.
Who will pay for the funeral?
Some people choose to pay for their own funerals in advance, so as not to saddle their loved ones with the expense – or even debt – of funeral costs. Options for doing this include pre-paid funeral plans or funeral insurance. You may also opt to leave some money aside – in this case, the executor of the estate will ensure that funds are allocated to funeral costs. Sometimes a family member or friend will take on the responsibility for paying for these.
What if you can’t afford it?
If there aren’t enough funds in the estate to pay for funeral costs – and there are no family members or friends to arrange payment – then the local council or hospital can arrange for a Public Health Funeral. This usually involves a short cremation service, without extras like flowers or newspaper notices.
If you’re on a lower income, you could be eligible for the Government’s Funeral Payment scheme. There are conditions based on factors like what country the funeral will be held in, your relationship with the deceased, and the government benefits you’re already receiving. You can find more about these specifications on the GOV.UK website. The amount you’ll receive depends on a number of circumstances, including whether there is already a pre-paid funeral plan or insurance policy in place.
You may also qualify for bereavement allowance or other related help following the passing on of a loved one. The type of support you could receive will depend on your relationship, for example, if you were married or in a civil partnership.
- How do tax credits work?
- What is a trust fund?
- What is Inheritance Tax?
- Closing down a bank account after a death
- What is Marriage Tax Allowance?
- What happens if you don’t leave a will?
- Registering a death
- What happens to property after a divorce?
- Will a prenup protect me if I get a divorce?
- How much does a divorce cost?
- Looking after your credit score while you’re at university
- Guide to credit and debit card protection
- Cashless society and changing savings habits for kids
- Living and working on the UK Minimum Wage
- How to budget if you’re a single parent
- Infographic: Average Equifax Credit Scores across the UK
- How to budget at university
- Guide to sending money overseas
- How to budget for kids going back to school
- How the Budget 2018 will affect your earning, spending and saving
- Infographic: How much does it cost to get married?
- What is the workplace pension?
- Infographic: Millennials and money - What kind of side hustles are they doing?
- Budgeting for the holiday season - gifts
- Budgeting for a wedding
- How much rent can I afford?
- Pension tools and resources
- Planning for early retirement
- Downsizing your home
- What will my state pension be?
- Budgeting for a baby
- Budgeting for a holiday
- An introduction to investments
- Financial planning for parents
- How transferring pensions works
- Helping elderly parents manage their money
- Budgeting for school holidays
- Looking after your financial documents
- New Year, new start to your finances
- How to avoid overspending on special occasions
- Financial Jargon Buster
- Getting Financial Help – The Best Online Resources
- Explaining the Different Types of Savings Accounts
- Understanding Payment Cards
- Money Saving Strategies – Tips on How to Save
- How to Budget Your Finances