FINANCING THE FUNERAL

The costs of a funeral are normally paid for out of your estate, but there can be a delay before these funds become available. This is not always a problem, as your bank or building society may be prepared to advance money to pay for the funeral before probate is granted, or the funeral directors may delay the demand for payment if asked to.

One way to circumvent such a problem is to pay into a funeral plan which will release the cash when the funeral director submits the invoice. There are a number of firms on the market, such as Golden Charter, Golden Leaves, schemes administered by Age Concern and Help the Aged and some run by funeral directors themselves.

As a precaution you should only take out a plan affiliated to either the National Association for Pre-paid Funeral Plans (NAPFP) or the Funeral Planning Council and approved by the Funeral Planning Authority. Prices usually start at around £1,500 and are payable either in instalments or in a lump sum. However, it is important to read the small print very carefully to see if your payment is guaranteed to cover the full cost of the funeral or if extra charges will be payable if the plan is not fully paid up. Some of the more popular plans are to be found in the Useful Addresses section of this book.

Some trade unions and other mutual associations pay out funeral benefits to their members. You might also consider taking out a life assurance policy or opening a deposit account for the express purpose of paying your funeral expenses.

It is important to advise your next of kin or executor of any financial arrangements you may have made, and particularly if you have paid into a funeral plan as this may restrict the choice of funeral director.

Chapters 3 and 4 deal with funeral arrangements in detail.