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Paying for funerals

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124

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  • dzug1
    dzug1 Posts: 13,535 Forumite
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    ticktack wrote: »
    What happens to their money if the funeral company gets into trouble and goes into administration?

    Depends - if the money has been used to buy an insurance policy or has been placed in a trust fund you will be OK

    Otherwise you are likely to have lost it.

    I personally think it is wrong the amount funeral parlours charge

    Running a 24x7 business, which most of them are, ain't cheap

    And you do have some control over the extras
  • ticktack_2
    ticktack_2 Posts: 172 Forumite
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    So im just looking into 'cardboards box coffins' ie biodegradable,there is some amazingly beautifull coffins,to my suprise.
    http://www.greenfieldcreationscoffins.co.uk/

    Nice link. I particularly like the one done up like a prezzie, complete with ribbon. :)
  • Savvy_Sue
    Savvy_Sue Posts: 46,254 Forumite
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    ticktack wrote: »
    I'm racking my brains trying to decide what kind of place to move into for my final years. Any mortgage will have to be paid by my kids -- at least the interest -- until they can sell it.
    Can you not take out life insurance which would pay off the mortgage on your death?

    Also I'm not sure they would be liable to carry on paying the mortgage: it's the estate which is liable, so if they tell the mortgage company that they can't or won't pay, what's the worst the mortgage co can do - repossess it. Which would be a long way downstream ...
    ticktack wrote: »
    I don't want to rent, as that will diminish what I can leave them,
    But surely the best thing is to be where it's right for you: doesn't that matter more than the size of your estate?

    I know I'd be really pleased if my mum agreed to move out of her very large house into rented: no more responsibility for repairs, for starters. Yes, it might reduce my eventual inheritance - so what? For all I know she'll change her will and leave it to the cat's home: it's her money and she should use it in life!
    Signature removed for peace of mind
  • ticktack_2
    ticktack_2 Posts: 172 Forumite
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    Savvy_Sue wrote: »
    Can you not take out life insurance which would pay off the mortgage on your death?

    That would be nice, but since I'm 72, I think the premiums on such a policy would be very expensive.
    Also I'm not sure they would be liable to carry on paying the mortgage: it's the estate which is liable, so if they tell the mortgage company that they can't or won't pay, what's the worst the mortgage co can do - repossess it. Which would be a long way downstream ...

    I'm sure you're right, it wouldn't be reposessed, but if the interest payments weren't kept up, the interest would keep rolling up, with interest due on the outstanding interest, etc. That mounts up very quickly.
    But surely the best thing is to be where it's right for you: doesn't that matter more than the size of your estate?

    I know I'd be really pleased if my mum agreed to move out of her very large house into rented: no more responsibility for repairs, for starters. Yes, it might reduce my eventual inheritance - so what? For all I know she'll change her will and leave it to the cat's home: it's her money and she should use it in life!

    My situation is different. I don't have a very large house -- only a small flat. I need another small flat, without so many stairs. The problem is, the mortgage on this flat is fairly small, but for various reasons, if I sell and buy again, the mortgage will be much larger, probably double. But the alternative, renting, is very expensive. If I sold this flat and moved into a rented flat, it would eat steadily away at the money from the sale. And I might live for another 20 years. I couldn't bear it. And I certainly wouldn't dream of cutting my children out of my will. I hope to be able to leave money to help with my grandchildren's education. I would be miserable sitting in a rented flat watching the children's education dwindle away before my eyes. I think it will have to be the mortgage route, and maybe try to put some money aside where they'll be able to access it, to pay the interest on the mortgage for a period of time after I die.

    Thanks for your suggestions.
  • Lost2
    Lost2 Posts: 15,599 Forumite
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    I would like one of those cardboard coffins and cremation
    and instead of flowers I'd like someone to plant a tree
    Sealed Pot Number 018 🎄2009..£950.50 🎄2010..£256 🎄 2011..£526 🎄2012..£548.80 🎄2013...£758.88🎄2014...£510 🎄2015...£604.78 🎄2016...£704.50 🎄2017...£475 🎄2018...£1979.12 🎄2019...£408.88🎄2020...£1200.63...🎄2021…£588 🎄2022 £672… 🎄2023 £3,783.90 🎄2024…£
  • OneYorkshireLass
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    My grandad, who passed away last month, had a plan with Age UK http://www.ageuk.org.uk/products/products/financial-products--services/funeral-plan/

    We only had to pay for flowers and everything else had already been taken care of and it was easy to understand when the time came.
  • scotsbob
    scotsbob Posts: 4,632 Forumite
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    My grandad, who passed away last month, had a plan with Age UK http://www.ageuk.org.uk/products/products/financial-products--services/funeral-plan/

    We only had to pay for flowers and everything else had already been taken care of and it was easy to understand when the time came.

    The cheapest plan is £2800 which seems very expesnive compared to our local undertakers

    http://www.cremationservices.co.uk/disbursements.html
  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    scotsbob wrote: »
    The cheapest plan is £2800 which seems very expesnive compared to our local undertakers

    http://www.cremationservices.co.uk/disbursements.html

    The total cost of their traditional service is £2167 once you add in all the extras they offer.

    If you buy a funeral plan at today's prices but don't die for a few years, the plan will probably work out cheaper.
  • scotsbob
    scotsbob Posts: 4,632 Forumite
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    Mojisola wrote: »
    The total cost of their traditional service is £2167 once you add in all the extras they offer.

    If you buy a funeral plan at today's prices but don't die for a few years, the plan will probably work out cheaper.

    That is not comparing like for like.

    OK then compare like for like, all the extras with the plan costs £3,400, compared to £2167 from our local undertaker.

    A basic funeral with the plan is £2,800 with the plan and £1,597 with our local undertaker.

    Having one of these plans works out £1300 more expensive either way. It would be better value to invest the lump sum.
  • ticktack_2
    ticktack_2 Posts: 172 Forumite
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    scotsbob wrote: »
    That is not comparing like for like.

    OK then compare like for like, all the extras with the plan costs £3,400, compared to £2167 from our local undertaker.

    A basic funeral with the plan is £2,800 with the plan and £1,597 with our local undertaker.

    Having one of these plans works out £1300 more expensive either way. It would be better value to invest the lump sum.

    Except that nowadays it's hard to find a way to invest a lump sum which both (a) keeps up with inflation and (b) is easily accessed by others after your death.
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