Losing a loved one is profoundly difficult, but the financial concerns of
arranging a funeral can cause additional anxiety. From choosing the right
funeral director to making a claim on the deceased's life insurance policy,
there are many things to take into consideration. Here Times Money provides
a guide to funeral arrangements and all the costs.
Arranging a funeral
Funerals are expensive. In 2006 the average cost of a burial service,
excluding the headstone, was £3,307, while a crematorium was £1,954. But
costs can easily spiral beyond this. For example, you will pay more if you
want to be buried or cremated in a borough in which you do not live at the
time of your death.
Some people may have already planned and paid for their own funerals (see box,
facing page), but if you suddenly find yourself having to arrange a loved
one's send-off, it can be daunting. At some point you will need to work out
how you are going to pay for it all.
The bank account of the person who has died will be frozen, unless it is a
joint account. In some cases, the bank may agree to release funds to pay for
funeral costs, but it is not obliged to do so until probate is granted. If
the bank does not release funds, you may have to pay for the funeral and
recover the money from the estate of the deceased later.
There are several things that you need to check about the deceased when paying
for a funeral. First, was he or she a member of an occupational pension
scheme? Some schemes pay a lump sum to help with funeral costs, and
sometimes pay pension benefits to widows or other dependents. There may also
be money payable from the deceased's trade union or professional body, so
contact such organisations directly to find out.
The deceased may have taken out a life insurance policy that provides a
lump-sum payment when someone dies. Payment is usually made after grant of
probate, but the insurance company may pay out a limited sum on evidence of
death.
Most people make funeral arrangements through a funeral director. However, it
is important to check that the company you choose is a member of one of two
trade associations, the National Association of Funeral Directors (NAFD) or
the National Society of Allied & Independent Funeral Directors (SAIF).
Costs can vary significantly among different funeral directors, so always
obtain more than one quote. They should provide detailed price lists for you
to take away and consider, so do not feel pressurised into agreeing to
anything immediately. Also remember to ask for written details of all
disbursement fees, which may include a doctor's certificate, newspaper
announcements, flowers and crematorium or burial fees.
Some people prefer to make their own arrangements because this can be more
personal and less expensive than going through a funeral director. Mike
Jarvis, of the Natural Death Centre, the charity, says: “This would involve
collecting and storing the body and making all the funeral arrangements.
While it may not be suitable for everyone, some people take great comfort in
arranging a funeral themselves.”
The Natural Death Centre helpline can advise on arranging a funeral yourself.
Call 0871 2882098.
Green options
By 2010 it is expected that 10 per cent of all funerals will be
environmentally friendly or “green”. Some cemeteries have a specific section
of land for green burials, while the Natural Death Centre has established
228 natural burial grounds in the UK over the past 15 years. These sites
include woodland, meadows and farming land. Mr Jarvis explains: “These
burial grounds are used for unembalmed bodies to be buried in a
biodegradable coffin. Instead of a headstone, there will be trees, plants or
wildlife. Not only are traditional headstones expensive, they are also bad
for the environment, particularly as the materials used are often shipped in
from abroad. At a green burial, graves are simply marked with a
biodegradable wooden cross.”
Natural burial grounds are usually cheaper than sites at municipal cemeteries,
although biodegradable coffins can be more expensive.
If you are considering a green funeral, you should investigate whether the
land has a deed, or trust, in place to protect it from commercial
exploitation in future. John Weir, of SAIF, says: “Check with your local
authority that there is permission to use the land as a burial site. Once
permission is granted, it is unlikely that the remains will be disturbed.”
Financial help
If you are on a low income and need help to pay for a funeral, you may be
eligible for a social fund funeral payment of up to £700, plus reasonable
disbursement fees. The payment is means tested and you must be receiving
certain benefits to qualify. You may have to repay some, or all, of the
money from the estate of the person who died, but if there is no money from
the estate, you will not be held liable. To make a claim, contact Jobcentre
Plus on 0800 0556688.
If your spouse or civil partner has died in the past 12 months and you are
under 65, you may be eligible for a bereavement payment. This is a one-off
tax-free lump sum of £2,000. There are various other benefits to which you
may be entitled after a bereavement. These include community care grants,
crisis loans and the war widow's or widower's pension. For information on
how to claim, go to www.direct.gov.uk.
How about the DIY approach?
Currently only 2 per cent of funerals are preplanned and prepaid. You may
think it a little morbid to consider your own funeral, but remember that
planning and paying in advance will save your loved ones a lot of hassle
after your death.
John Weir, of the National Society of Allied & Independent Funeral
Directors (SAIF), says: “If you bought your own funeral from a specialist
funeral director today, you would pay for the director's fees and the
disbursement costs. The former is locked in, meaning that you or your estate
would never have to pay extra for the funeral director's fees, even if you
lived for another 30 years.
“However, the funeral director has no control over disbursement costs, so
these may have increased by the time of your death. In this case, the
difference would have to be recovered from the estate. For example, if you
paid £500 to cover disbursement costs and when you died the costs had
increased to £700, your estate or family would have to pay the extra £200.”
A number of funeral planners offer prepaid funerals, including Golden Charter,
Dignity, Help the Aged, Age Concern and Co-operative Funeralcare. Mr Weir
says to check that the provider is registered with the Funeral Planning
Authority, a regulatory body that ensures that companies meet requirements
laid down by the Financial Services Authority. This includes ring-fencing
the money paid for funerals to ensure that it is protected and used
correctly.
In case you change your mind about your funeral arrangements, check the
director's refund policy - some will return your money.
Remember that you need to appoint someone in your will, or somewhere else in
writing, to oversee the funeral arrangements and liaise with the director.
Mr Weir adds: “Even if you do not want to take out a prepaid funeral, I
would encourage everyone to think about what sort of funeral they want and
to discuss this with relatives.
“I see so many families agonising over whether or not to bury or cremate the
deceased, whether to donate organs and what sort of service to have. If the
deceased had left specific instructions, it would have saved his or her
loved ones a lot of worry.”
Case Study: Peaceful and simple burial
Alexandra Boyd recently arranged the funeral of her father and opted for a
“green” service at a woodland burial site.
The actress, who lives in Suffolk, says: “My father left no instructions for
his funeral, so it was daunting to arrange the service. He was an atheist,
so I knew that he would not have wanted it in a church. I contacted the
Natural Death Centre helpline and they spoke to me for 45 minutes,
explaining how to organise a green funeral.”
Ms Boyd opted for Tony Brown's Funeral Service, a specialist “green” funeral
parlour that owns a woodland burial site in Suffolk. “I bought an ‘ecopod'
coffin, which is basically made from recycled paper,” she says. “It
was quite expensive at £700, although there were cheaper wicker alternatives
available for only £275.
“The body was not embalmed because this is a toxic process. The grave was dug
between two trees in the woodland and the service was conducted at the
graveside.
“The total cost came to £2,200, which I will eventually recover from my
father's savings accounts. The burial was peaceful and simple - and the
woodland is really beautiful.”
