Paying for funeral costs from the estate, how does this work?

[Flailing274]

Hi,
In the midst of an imminent bereavement this is not what I really want to spend time and energy worrying about, but needs must. My father is very very ill, and we're going to need to start organising the funeral soon. It will be myself and my sibling who organise it. I understand that funeral costs can be paid for by the estate, but how does this actually happen in practice? I have LPA for finances, and access to his bank account currently, but this will end when he does pass away. When I inform the bank that he has died, do I let them know we will need money for the funeral? If so, how is this released? Do we need to wait until probate is completed? I don't think he has a will (he refused to make one when he had capacity, and he has had Alzheimer's for a number of years), so how long does that usually take to complete? I'm just wondering if I need to try and arrange a personal loan now, or if I could use my credit card. Obviously credit card is less than ideal if we won't get any money for the funeral for some time. Thanks for any advice, sorry if you've been in this position!

Sorry for your impending loss. DH just lost his dad and we've been told that once the banks are told the accounts are frozen but they will settle up directly with funeral directors (I would guess if you are doing it yourself you would need to check what evidence they'd need to release the funds). Probate is not needed for this.

I'm sorry to hear you're in such a difficult position OP.

First thing to check is if there's a policy or payment plan in place.

Then some undertakers will let you delay payment, others will only need a deposit - shop around and ask.

Otherwise it's a case of paying upfront then 'claiming it back' from the estate - funeral expenses get first call, before any debt or anything like that. Probate I can't advise on as I'm in Scotland.

Sorry to hear about your father. Banks will release funds for the funeral- they usually need to see the funeral director's invoice and the death cert. Your funeral director will know all about this so don't let it add to your worries.

Some banks will release funds under 50k even without probate. Or as others have said, will pay direct to funeral directors if needed. Without a will probate may take a long time - it took us almost a year. So if you can get the funeral settled from his bank account, definitely do so.
And I'm very sorry you are having to deal with this. It's really challenging.

Is it just you as beneficiary or you and close family? If it were me, I'd withdraw the money in advance so the bills could be paid and keep the receipts and any money left over for proof of how the money was spent.

AFAIK the bill for the funeral can be settled from the estate ie payment from the bank account against invoice. The bill for any wake following the funeral cannot though and is an expense to the family organising it.

What happens is that the funeral directors will invoice you after the funeral. You get a form emailed from the bereavement team at the bank (they are so kind and helpful) and fill it out and then they will pay them direct.

They will also pay any other needed estate expenses direct, and can talk you through it all. I also found the funeral directors massively helpful at a very difficult time when I lost both parents in quick succession.
While you still have access to the accounts, print out a years worth of statements so you know all the payments and who is getting paid so you know who to contact, it will make life easier than having to find it all out later.

I'm so sorry you are having to deal with all this.

Thank you, it's good to hear that some banks will release funds, that's what I was hoping would be the case, so that's given a lot of reassurance. Hopefully my dad's bank will do that. It would be me and my siblings who are beneficiaries of the estate, unless there's a will to the contrary. I don't really want to withdraw money in advance, I think that might be legally dodgy, and I don't know how much it will be. I really don't think he has a funeral payment plan, is there anyway of finding out? We don't have any paperwork for one. Hopefully I can just pay a deposit for the funeral, so credit card should be OK for now.

That's good to hear, thanks @CMOTDibbler

I paid for my dm's and claimed it back from the estate, I was the executor.
I found out after I'd paid that the bank would have paid it from her account on presentation of the death certificate (HSBC)

It is actually very straightforward, the funeral directors/banks are very used to this and will practically do it for you.
My Ddad died completely unexpectedly but the death certificate was all that was required to get it done and dusted.
The remainder of the estate - probate, accessing bank accounts, shares, investments, pensions, settling council tax, house insurance etc was all sorted out later when we were more able to cope.

Sorry to hear about your Dad

Unfortunately I've done this twice in the last couple of years with 2 different banks. Both times the funeral director invoiced me after the funeral had taken place. I took the invoice to the bank and they wrote me a Cheque to give to the funeral director, and took the money from the accounts.

I've just Googled it and it appears that as you say, my dad's bank can pay the funeral costs directly, which is a relief. Thanks for all your advice.

On a related note though, does it matter if the money is in his current account, or a savings account? Most if his cash is in his savings account rather than his current account, they are with the same bank. I could transfer some cash from the savings into the current account now if it will make things easier.

When my Mum died last year, the funeral director sent his invoice directly to the bank (Santander) which paid it from her account. We knew the bank accounts would be frozen as soon as we told them that she had died and as her house was rented out, we decided to transfer some of her money into an old bank account of mine that was not in regular use to cover house expenses or other unexpected costs. We had POA so we’re able to do the transfer a few days before she died and it’s a good job we did as it took us nine months to sort out probate due to delays with some tax returns and in that time we did some repairs to the rented house. Even though the rental income continued to go into Mums frozen bank account, we were not able to access it to pay bills, although existing direct debits for insurance etc were covered.

I know what we did was strictly dodgy but my siblings trusted me implicitly to manage the “slush” fund and I kept all receipts and bank statements. It saved us having to use our own money to pay for a number of things. Once mums estate is finally wound up and funds distributed, I will close the account and share the balance with my siblings.

There is no inheritance tax to pay so there is no question of us trying to hide money.

My mum just sent the bill on to the solicitor who was executor.

I just sent the funeral invoice to the bank and they paid it directly. There was an online page where I uploaded it. I then emailed the funeral director informing them, and they sorted it out between them. Next I heard was an email from the funeral director confirming payment.

My dads bank agreed to pay funeral costs but there was a time lag where co op asked for a deposit before this was sorted.And we had other expenses re wake etc. I had transferred some money to my account pre death with my siblings agreement.

I don't think it matters the type of account. They can pay because legally the first call on the estate is for funeral expenses. Natwest settled directly with the funeral director for my dad.

I lost both parents within a week in April.
Chose a family run undertakers on advice from our vicar who said they would arrange everything.. and they did.

Bill went directly to their bank whose bereavement team paid it all. No deposit at all just both death certificates. They also settled the wake. (This has of course got to be 'reasonable' - so know excess booze just has to give an idea of numbers)

Lloyds bank really helpful paid funeral and wake bills straight after the funeral, even though mums account was frozen. POA disappears on death.
also, get lots of copies of the death certificate- lots of places will want a copy.
and 🌺🌺.

This sounds sensible

Can this be done by telephone banking? We don’t have a bank branch within an hour’s journey.

@MereDintofPandiculation you can do it by post . You'll need the form which you fill in with the FDs bank details etc and then send it with the death certificate to the bereavement team.

I would also echo what pps have said about funeral directors - our local one is frankly amazing and couldn't do enough for me. I'd maybe read a few google reviews to see if there's anyone locally that's getting great feedback, mentally make that decision, then mentally file it away. They do absolutely know their stuff and will take you through every step.