Prepaid Funeral Plans

nickmcivor

Indy Dave any more details on the new Law regarding pre-need at need funerals 
thanks
 

Independent_Dave

nickmcivor said:

Indy Dave any more details on the new Law regarding pre-need at need funerals 
thanks
 

The pre-need market will be first but due to the current Covid situation the consultation process has been delayed.  What we do know is that it will be the FCA who will regulate the industry which should be a good thing. It will probaby remove the fringe providers when commissions must be declared like any other financial product. Legislation for the at-need market is now in place in Scotland but it is yet to reach the rest of the UK. Consultations are still taking place so don't expect to see it for at least 18 months.

malcb60

My situation is that my father had a funeral plan with Golden Charter. However, at the time of his CV19 death in April, no funeral services were being carried out by his crematorium.  I anticipated that a refund would be straight-forward but GC are only prepared to make a "goodwill payment" of the amount he paid in 1998 for a limousine! No offer has been made for any of the other funeral services (that GC detail in the info pack) that could not be provided in the circumstances. 
The complaint will now go to the Funeral Planning Authority and ultimately the Small Claims Court.

Tappers

malcb60 said:

My situation is that my father had a funeral plan with Golden Charter. However, at the time of his CV19 death in April, no funeral services were being carried out by his crematorium.  I anticipated that a refund would be straight-forward but GC are only prepared to make a "goodwill payment" of the amount he paid in 1998 for a limousine! No offer has been made for any of the other funeral services (that GC detail in the info pack) that could not be provided in the circumstances. 
The complaint will now go to the Funeral Planning Authority and ultimately the Small Claims Court.

That's poor behaviour. Have you spoken to the Funeral Director involved and asked them what they're being paid as a redemption value by Golden Charter? Who's the Funeral Director? Are they a member of SAIF or NAFD?

Bulldog1

Sadly, my mum died on the 16th August (not Covid related). She was reluctant to buy a funeral plan probably superstitiously thinking it would hasten her death. Everything is delayed because of Covid restrictions but as a council tenant we had just two weeks to clear her home and return the property to the landlord. Therefore, the hearse will go from the funeral parlour, no cars, no chapel for a service, just a half dozen people to say a socially distanced goodbye at the graveside after the pall bearers have lowered her coffin into the grave. The cost? £5244 for a burial in a plot we already 'own' (leasehold). The cemetery are charging £2090 to open my father's grave. Had mum purchased a funeral plan, that cost would have been included and not charged as an additional cost. Makes you think, doesn't it?

Ryan1727

Funeral costs are exempt from inheritance tax. The cost of the funeral can be deducted from the value of the estate before inheritance tax is calculated, therefore it should not be included as one of the stated benefits of a funeral plan.
If I am right, I think you should review the article as it could be misleading.

nursemaggie

Ryan1727 as a council house tenant Bulldog1's mother is extremely unlikely to have left enough money to even cover her funeral never mind be liable for inheritance tax. Your post was totally irrelevant.

waghorn

Looking at a simple cremation plan with Pure Cremation or similar. Are these plans OK and are there any hidden pifalls?

Independent_Dave

waghorn said:

Looking at a simple cremation plan with Pure Cremation or similar. Are these plans OK and are there any hidden pifalls?

Pure Cremation operate from their facility in Charlton Down, Andover so your body will be taken there for the cremation to happen.  If you die anywhere other than a hospital you will need a local funeral director to keep you in their care until the registration process has happened and the necessary documents completed by doctors.  If you read the content of the plans it does say "A scheduled transfer from hospital or Coroner’s mortuary in England or Wales"   So if you die at home for instance, the plan does not cover this.  My advice would always speak to your local independent funeral director, they all offer this type of plan and often its usually the same cost or cheaper and you're using a local family company.  If you need help find a local Funeral Director just give me your postcode and I'll recommend one to you.

doshminer

Ryan1727 - I agree. In Section 1 "A Funeral Plan Isn't Worth It For Everyone" The article says "Another bonus of a funeral plan is that once paid for, it isn't counted towards your estate, so it's excluded for inheritance tax purposes when you die, unlike money in a savings account which does form part of your estate."
But, you can deduct the funeral costs from the estate before IHT. It could be clearer.