Here is some information to help you understand the process when there is little or no money available to cover the cost of a funeral.
Public Health Funerals
When someone dies without any money to cover funeral costs, it becomes the local council’s responsibility to pay for a basic funeral.
This statutory duty was originally introduced as a disease control provision under the Public Health Act 1984 and is estimated to cost local councils £1.7 million a year in the UK.
Social Fund Funeral Payment
If the deceased is survived by close relatives or friends on a low income, or by those unable to cover the full cost of a funeral, the Social Fund Funeral Payment may help towards funeral expenses.
The fund may award up to £700 towards funeral costs, although some or all of this amount may need to be repaid from the deceased’s estate if there are sufficient funds once the estate has been administered.
Eligibility for the Funeral Payment depends on the applicant’s relationship to the deceased, their financial circumstances, and the size of the estate left behind.
Those who qualify for funding must use the payment to help with one or more of the following:
- Burial fees and exclusive rights to burial in a specified plot
- Cremation fees, including a doctor’s certificate
- Funeral expenses such as the coffin, flowers, and funeral director fees
- Travel costs
- The cost of moving the body within the UK if the distance is over 50 miles
Crowdfunding funerals
Crowdfunding was once mainly associated with start-up businesses and charity events. However, in 2016 there was a sharp rise in the number of funerals funded this way.
According to figures from the online fundraising platform JustGiving, more than 2,000 funeral services were funded through crowdfunding between January and September 2016. That was four times the number funded during the same period in 2015.
Who is responsible for handling the finances of a funeral?
The responsibility for paying funeral costs usually falls to the executors of the will. Executors are primarily responsible for distributing the assets of an estate to beneficiaries and settling any costs or liabilities owed by the deceased, including funeral expenses.
Where funds are available, the funeral bill is usually given priority over other unsecured debts, although secured borrowing such as a mortgage may still take precedence.
Although the deceased person’s assets and bank accounts may be frozen after death, banks and building societies can often be asked to release enough money to cover funeral costs.
In some cases, the deceased may have taken out a pre-paid funeral plan and paid for their funeral in advance. This can make matters much simpler for the executor and beneficiaries.
An experienced legal service provider can help guide you through the wills and probate process, whatever the financial situation of the deceased or their family.
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