| ifishoulddieweb@yahoo.co.uk |
|
|
|
Print-friendly version
Paying for a FuneralThe average cost of a funeral has soared over the last few years and is now estimated to be around £3,307 for a burial and £1,954 for a cremation according to a Survey of Funeral Costs, commissioned by insurance company, American Life in 2006, based on quotes given by 100 funeral directors across the UK.
Consequently, people have had to become more conscious of the cost and who will pay for it. In the past, people tended to assume there would be enough in their estate for their funeral, but with increasing costs and the fact that most financial affairs take several months to process, it is worth ensuring that sufficient funds will be available to cover the cost of any funeral by the person expected to foot the bill. Although it is a difficult concept to take on board, the most important advice is to 'shop around' and check what exactly is included in the price of a funeral 'package' before making the booking. It may be helpful to have a family member or close friend do this for the bereaved family. In many cases, burial quotes do not include the cost of a grave or the cost of a cremation, and coffins can vary in price from around £300 for a basic model to £2,850 for a customised oak casket. Most funeral directors require payment before probate (official proof that a will is valid) is granted and it may be worth considering how to pay for a funeral in advance, if that amount of money is not going to be readily available and there are a number of ways the cost can be covered. 1. Check whether the deceased person had contributed to a scheme to pay for a funeral 2. Check the deceased's papers for a Cremation Society certificate, life insurance policy papers or details of any pre-paid funeral plan. Also look for letters from previous employers with details about any occupational pension scheme or personal pension. 3. If no one is able or willing to arrange and pay for the funeral, the local council, or in some cases the health authority, may do so but only where the funeral has not already been arranged. Payment from the estate of the deceased The bank account of the deceased will be frozen, unless it is a joint account. Building societies and National Savings may release sums of money to pay for funeral expenses, although they are not bound to do so until a grant of probate or letters of administration are obtained. If a person who died was living in hospital or residential home, the possessions (up to a figure fixed by the relevant local authority) will be handed over to the nearest relative or to a person with written authority from whoever is dealing with the will. Pensions and payments There may be pensions or lump sums payable from the deceased's trade union, professional body or other association, or from a provident club which pays benefit when a member dies. Benevolent Charities Benevolent charities had their roots in helping the widows and orphans of Victorian professions and trades, but still have an important role to play today. Last year 31 benevolent charities joined together to raise awareness of the financial and other support they can offer to people in need. A website was set up www.benevolencetoday.org where users can type in their job, profession or trade and find out which of 200 benevolent funds and friendly societies may be able to help them. Planning in Advance Term Life Assurance Policy A term life assurance policy is a life insurance policy which will provide a lump sum payment if someone dies before a certain age (known as term assurance or endowment assurance), or on death at any age (whole life insurance). It can cost as little as £1 a day and has the advantage that the proceeds are tax-free. Payment is usually made after probate, but the insurance company may pay out a limited sum on evidence of death. Savings Account Many funeral directors arrange pre-pay policies and some funeral directors will accept advance payments outside a funeral plan. Some may even accept payment in instalments if this is agreed when the funeral is arranged, but ensure that your money is kept separate from the funeral director's business accounts. Pre-paid Funeral Plans Funeral plans have been big business in the US for years and are now heavily marketed in the UK, encouraging mainly elderly people to pay for their funerals before they die. These plans enable someone to set aside money solely for funeral costs but legislation to safeguard the money paid out has yet to be passed. An Office of Fair Trading Report in 1995 expressed serious reservations about the pre-paid funeral industry. Sir Bryan Carsberg, then director-general of the Office of Fair Trading called on the industry to stop offering charities incentives to endorse their plans and to cease making sales presentations in residential homes. In 1999 the government announced that it would give the Financial Services Authority powers to regulate the industry in the Financial Services and Markets Bill. The Act was passed in June 2000, but implementation will be at least a year away. Funeral directors who belong to the National Society of Allied Independent Funeral Directors (SAIF) are free to sell any funeral plan they wish. Some run their own plans and others offer a scheme called Golden Charter, which allows the purchaser to choose the funeral director. Some of the questions to ask when considering a Funeral Plan are;
All undertakes should be able to provide a 'simple, basic funeral', which should comprise of;
Funeral Payments from the Social Fund Part of the social security system, the Social Fund can give grants for those arranging a funeral who do not have sufficient money to cover the cost. The person who applies for the grant must be in receipt of one of a number of benefits or tax credits and even then the funeral payment would not be awarded if there is an immediate family member who is not receiving a qualifying benefit. Savings over a certain amount will be considered. There is a single lump sum payment which must be claimed within three months of the funeral. If a grant is made and there are assets in the estate of the person who has died, the Social Fund will demand reimbursement. Only when it appears to the local authority that there are no friends or relatives, and that no suitable arrangements are being made for the disposal of the body, will the authority take responsibility for making suitable arrangements. For more information, contact the UK central government website www.direct.gov.uk |
|
| Ifishoulddie - - Email: ifishoulddieweb@yahoo.co.uk Copyright © Ifishoulddie 2008. Directory Software by 7Soft.co.uk. |