Prepaid Funeral Plans

nursemaggie

I am 72, I have cancer but it is under control with medication. I could live for years or due to the many side effects the medication may see me off earlier.

I have a small income, not a full state pension and a very small pension from work. I get 100% Housing Benefit.With the help of MSE I am managing fine on my income. I had a very late baby when I was 48. He has just moved out at the age of 24 leaving better off. He finally got a full time permanent job.

I have found an even smaller pension which I could take as a lump sum but that would mean I had too much capital to get any housing benefit so I would just end up paying it out for rent until it has all gone. That will probably take a couple of year and then I would be back where I am now. I would also have to pay tax on it. At present my income does not come any where near me having to pay tax.

I could get a quarterly paid pension which would only be about £10 a week. I would also get a lump sum of just under £4,000. I was thinking I would use it to pay for my funeral and it would then be out of the way and not have to worry about leaving enough in my bank account for my funeral.

If I just put the lump sum in a bank account to pay for my funeral it will still be counted as capital. The way benefits count it would be assumed that I was receiving 1p in the pound interest counted as weekly income, so I loose that anyway unless the allowance goes up a lot. I don't think it has been put up since 2009.

I do use my capital to pay for extras like replacing items, like towels, bedding and appliances and decorating because my weekly income just does not cover that sort of thing. I just about manage to put away each year enough for Christmas presents. I don't buy many.

I don't really want to have to wait until the government decides what to do about regulating the industry for funeral plans as my lump sum will have probably gone on rent by then. Even when they decide it could be a couple of years before anything comes into force if it ever does.

I am not sure what to do if paying for my funeral does not actually pay it.

badmemory

They are only trying to regulate because of a number of them which are not behaving as they should. My mother had a paid for funeral by the co-op & the only thing which she hadn't paid for was a spray of flowers on the coffin & that was the only thing we had to pay for.


I believe that if you go into a funeral directors to organise your funeral that (if you can keep a clear head & look at it as just another purchase) you will be able to tell from the conversation just what it includes & doesn't include.


I would look at it in the same way as many other things - if they have cold called you say no!


As long as your son is named as beneficiary on your pension then (please forgive the bluntness) until you are 75 he can inherit tax free, then it becomes taxable. That gives you 2 years before you need to make a decision.

nursemaggie

badmemory thank you. I need to make a decision before the end of the month or go through the recalculation of my pension. I could use the £10 a week now. I do have two other children in their 40s so it would not go far between three.

My parents used Age Concern as it was then. When both of them died their church supplied a meal afterwards so we did not even have that to pay for. Having dealt with two different funeral directors, as mum moved near us when dad died, and two different churches I though it was very well handled by all.

sheramber

When you choose a funeral plan you decide what you want covered and pay accordingly.

I f you choose a plan that does not include flowers or does not include extra cars etc then , if these things are wanted, they will have to be paid for.

Your relatives may be happy to buy flowers themselves and use their own cars so cover for these would not be necessary.

If you want all these things covered then you pay more.

You can go online and check out the options available without having to purchase anything.

twhitehead

I have been trying to get information about a SIMPLE cremation with nothing else. I have been to the Coop who gave me a leaflet about their Only Cremation which was exactly what I wanted. However when I said OK here is my credit card I got 'we do not allow payment in advance' (but I am not in need of the service just yet).
I have looked and cannot find anyone who can do this. They need to have registration of a trade body which I recognise as probably being around 20 years from now when they will have to do the job.
Am I asking too much???

Larac

twhitehead wrote: »

I have been trying to get information about a SIMPLE cremation with nothing else. I have been to the Coop who gave me a leaflet about their Only Cremation which was exactly what I wanted. However when I said OK here is my credit card I got 'we do not allow payment in advance' (but I am not in need of the service just yet).
I have looked and cannot find anyone who can do this. They need to have registration of a trade body which I recognise as probably being around 20 years from now when they will have to do the job.
Am I asking too much???

I thought that one of the options on the Co-op pre-paid funeral plan was a 'simple cremation'. Hearse takes the coffin, to the Crem, no choice of time, no family cars etc. Currently £2800 - I am sure in 20+ years the cost will be alot higher. Crem fees alone at the moment are around 1K.

Mojisola

twhitehead wrote: »

I have been trying to get information about a SIMPLE cremation with nothing else. I have been to the Coop who gave me a leaflet about their Only Cremation which was exactly what I wanted. However when I said OK here is my credit card I got 'we do not allow payment in advance' (but I am not in need of the service just yet).
I have looked and cannot find anyone who can do this. They need to have registration of a trade body which I recognise as probably being around 20 years from now when they will have to do the job.

That's a lot way ahead!

You might not even be living in this country.

There may be other options by then which you'd prefer to cremation.

Why not just keep enough money aside for your executors to use when the time comes?

twhitehead

I am 78 but optimistic.:j:j

itude

Good for you !

Yorkshireman99

Larac wrote: »

I thought that one of the options on the Co-op pre-paid funeral plan was a 'simple cremation'. Hearse takes the coffin, to the Crem, no choice of time, no family cars etc. Currently £2800 - I am sure in 20+ years the cost will be alot higher. Crem fees alone at the moment are around 1K.

£2800 is a total rip off. You can get this sort of service for aroynd £1400.