The cost of dying increased to £9,658 in 2023, a 5% increase from 2022.
This figure, calculated by SunLife, includes a funeral plus professional fees and send-off costs.
This increase brings added strain of funding on those left behind, with 19% of families last year experiencing notable financial concerns when paying for a funeral.
Most of this 19% utilised money from their savings, credit cards or borrowing from friends and family to make up the shortfall.
Paying For A Funeral With Pre-Paid Plans
Pre-paid plans are a common way to prepare for these costs.
The benefit of these is that you can choose every last detail of your funeral and pay for your funeral based on today’s prices.
When you pass, your family will simply need to contact the funeral director, who will handle the arrangements, saving your loved ones from the extra heartache and worry of making tough decisions once you are gone.
Life Insurance
Other people choose to take out Life Insurance to cover their funerals.
Generally, you will see these types of insurance markets to people over a certain age, normally for a value of between £3-5,000.
These will be paid out to your executor quite soon after your death, which your executor can then use to pay for your funeral.
Alternative Arrangements
If you do not choose to prepare for your funeral, your family will need to make alternative arrangements.
Most banks are prepared to release money from your bank account, directly to the funeral director once they have been advised of the death.
You may still need a Grant of Probate to access the remaining funds, but at least your family will not have to worry about an unpaid funeral bill in the meantime.
If you do not have enough funds in your bank account, then your family may have to provide the money from their own funds.
The family member can then be reimbursed by selling other assets if there are other assets to sell.
When a funeral director agrees to prepare a funeral, they are making a contract with the person arranging it, not the deceased person.
The person arranging the funeral is liable for the costs, and this may see them out of pocket for some time should there not be funds readily available in your estate.
Summary
Whatever your feelings on planning your own funeral, it is important that you consider how this is going to be paid for so that your family are not left out of pocket.
This could mean making formal arrangements, such as a funeral plan or Life Insurance, or simply leaving a “buffer” in your bank account to sufficiently cover this.
If you would like to discuss how your estate would need to be administered or would like some guidance towards funeral directors in your area, please contact our specialist Private Client Team on 0207 9366329, or by email to ssampson@monangozzett.com.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved
If you would like to speak to our expert legal team about this, or any related subject then please contact our team by phone on 0207 936 6329, Email or by completing our Quick Contact Form below.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved