Pre pay funerals

rita90

We are considering a pre paid funeral plan, as a funeral now will cost about 3K but in 10 or 20 years time, the cost will not bear thinking about.
I know there is legislation to cover these plans but wondered how safe the money would be for 10 - 20 years and what the best way to go about it would be.

Errata

rita - have a look at the AgeUK website here http://www.ageuk.org.uk/buy/age-uk-guaranteed-funeral-plan/choose-your-plan/

Pollycat

I just picked up on this thread as my Mum is considering pre-paying for her funeral.

MrsE
I read this in your post:

MrsE wrote: »

I hold my mothers bank card to pay her care home fees, to buy her any bits SHE needs, clothing, etc.

If your Mum has less than £10K in savings, why is she paying care home fees?

I thought (after much digging as my dad has very recently gone into a care home on a permanent basis) that if your capital was less than £14250.00 you didn't pay.
Or are you talking about 'top-ups'?

MrsE_2

Pollycat wrote: »

I just picked up on this thread as my Mum is considering pre-paying for her funeral.

MrsE
I read this in your post:



If your Mum has less than £10K in savings, why is she paying care home fees?

I thought (after much digging as my dad has very recently gone into a care home on a permanent basis) that if your capital was less than £14250.00 you didn't pay.
Or are you talking about 'top-ups'?

She gets her pension & has to pay most of it (except a small amount for pocket money) to the council towards her care.

Pollycat

I think I misunderstood your point about paying for your Mum's care home fees.
I thought you were paying but I guess you just mean they are taking the majority of her pension/benefits towards the fees.

My Dad is in a similar situation.
He has just over the £23,250 limit so he needs to fully fund his care from his savings at the moment.
They take his State pension, (small) occupational pensions, care component of DLA etc towards his fees and the difference between that and the home's tariff comes out of his savings.

lilac_lady

I almost bought a pre payment funeral plan but decided to open a joint bank account with my daughter instead. When I pop my clogs she will have immediate access to money to cover all expenses and hopefully have some left over.

I have the bank cards and pin numbers and get the statements so she has nothing to do with the account until she has to deal with my estate. (sounds grand, doesn't it?)

Savvy_Sue

lilac_lady wrote: »

I almost bought a pre payment funeral plan but decided to open a joint bank account with my daughter instead. When I pop my clogs she will have immediate access to money to cover all expenses and hopefully have some left over.

I have the bank cards and pin numbers and get the statements so she has nothing to do with the account until she has to deal with my estate. (sounds grand, doesn't it?)

it is what my mother has done too, but you realise there are some pitfalls? if your DD ever has to claim benefits, half that money will be deemed to be hers, ditto if she has relationship problems. If she's your only beneficiary, the next one is less of a problem, but all the money in that account will be deemed to be hers when you die, it will pass outside your estate, so if she either declines to use it for your funeral or has fallen out with others and runs off with the lot, there will be nothing that can be done.

I'm not saying "don't do it", just be aware of the issues, and if any of them apply then consider having her as a signatory but not a joint account holder. That's as much for others as for your situation: it may be entirely sensible.

Old_Git

lilac_lady wrote: »

I almost bought a pre payment funeral plan but decided to open a joint bank account with my daughter instead. When I pop my clogs she will have immediate access to money to cover all expenses and hopefully have some left over.

I have the bank cards and pin numbers and get the statements so she has nothing to do with the account until she has to deal with my estate. (sounds grand, doesn't it?)

if you have to go into care this money will be taken into account ,you may want it for funeral costs but it is still taken into account .
I recently purchased a funeral plan for my aunt .
It cost £3180 ,I consider it well worth paying .My aunt will end up in care and I know whatever is left when she dies will be mine .

Savvy_Sue

Old_Git wrote: »

if you have to go into care this money will be taken into account ,you may want it for funeral costs but it is still taken into account .
I recently purchased a funeral plan for my aunt .
It cost £3180 ,I consider it well worth paying .My aunt will end up in care and I know whatever is left when she dies will be mine .

yes, that is another pitfall I hadn't considered. Mind you, l_l's plan may be OK for her at the moment, but like all arrangements it needs to be reviewed BEFORE it matters, and we don't always have time to change things when it DOES matter IYSWIM.

lilac_lady

Thanks for the opinions. My sons are aware of the bank account (and the reason for it) and will be kept up to date regarding it so hopefully there won't be a family fallout. If there is, I'll just have to haunt them all!