children accessing money for our funerals

stefandgef

We are in our late 60s and haven't got around to planning funeral expenses. We have estate assets including property and a couple of additional small pension pots. If we die one at a time it could be manageable but we don't have much actual cash flow. If we go together like in an airplane crash then our children definitely don't have thousands of pounds. We are reluctant to take the money from a pension pot which gains in value each year and put this into another more accessible account. Any advice/suggestions? Steph

Mojisola

Don't you have an emergency fund?

Owain_Moneysaver

1. Banks will usually pay funeral expenses from bank accounts without waiting for probate.
2. The undertakers will have to wait for their money to be released from the estate.
3. Your pensions may include funeral benefits.
4. Your children, if claiming certain DWP benefits, can apply for a Funeral Payment.
5. You can have a Public Health Funeral (usually a cremation) by the local council who will then try to recove the cost from the estate.

Apart from funeral expenses your children will probably have other costs -- taking time off work and travel and accommodation for the funeral, etc, which aren't payable out of the estate.

Therefore you really should consider an emergency fund which will be easy for you and them to access quickly if necessary. National Savings will also usually pay out moderate amounts without waiting for probate. Also a few hundred quid cash at home that is immediately available can be very useful. Somebody is going to have to pay for copy death certificates, mail redirection, possibly new insurance policy on the unoccupied house, and a lot of other incidentals which soon mount up.

Although your pension pot is increasing each year, so is the cost of a funeral, so you may want to consider prepaying for your funeral as a hedge against inflation.

Magnolia

If you are on an airplane wont you have your travel insurance?

Larac

Not that I wish this on anyone - but if the surviving party end up in a CH, they will want to know who the FD is and what the arrangements are. We had to get a funeral bond in place to cover the eventuality for my Mum. I realise there is a huge 'debate' around funeral bonds - but worked in our case when we had to use it. When my Dad died, the Funeral Directors wanted a deposit of around a third of the cost before they did anything- so really you need easy access to some form of float.

Keep_pedalling

If you go together in a plane crash there will be little left of your to bury / cremate, so it should be quite cheap. You really should start building up an emergency fund.

Robin9

Have you a Company pension ?

If so you can arrange for an immediate payment to be made to the surviving spouse / children in the event of your death.

stefandgef

Robin9 wrote: »

Have you a Company pension ?

If so you can arrange for an immediate payment to be made to the surviving spouse / children in the event of your death.

Thanks for that. We both have public service pensions so I'll look into that.

Thanks for the other advice/suggestions everyone.

stefandgef

Magnolia wrote: »

If you are on an airplane wont you have your travel insurance?

We do have insurance but I am not sure how long it would take for that to be processed. In the meantime the funeral costs have to be covered.

Savvy_Sue

stefandgef wrote: »

We do have insurance but I am not sure how long it would take for that to be processed. In the meantime the funeral costs have to be covered.

In my experience, insurance payouts after death arrive quite fast. And the last thing you (or your children) need to worry about is accessing funds for the funeral: if the funds are available, then the funeral director will send their invoice to the bank.

McKneff

We have just taken out 2 funeral plans with the Coop , basic funerals at a cost od £5,600. Not a fortne but affordable.
We paid in full out of our savings but you can pay interest free over 12 months
Or even years with interest.
And MSE savvy. Become a coop member before we got a discount of £150 each