Travel expenses for mourners at a funeral

thrifty_pete

I am sure I read in a newspaper article on funeral expenses that the travel costs for guests / mourners at a funeral could be deducted from the estate. After trawling gov.uk it seems not to be the case, or perhaps it was possible before 2010?
In my case, it is likely after transferring the married partner's unused "tax-free threshold" there will not actually be any Inheritance Tax (IHT) to pay. In that case, it would be up to the beneficiaries whether they are happy to pay the travel expenses of mourners? HMRC won't care about funeral expenses if the estate would not be liable for IHT?

jackyann

We definitely did this in 2010, and it was included in the allowance before IHT was payable.

I'd also broadly agree that it is up to the beneficiaries, but make sure you record it all carefully, especially if, as in our case, it is a very expensive journey.

Rubik

It would only be the cost of the funeral itself that can be taken from the estate - travelling expenses incurred by individual mourners are met by the individuals themselves. Funeral expenses (ie the Funeral Director's bill, catering, hearse transport and any other direct expenses for the funeral) should always be paid first from the estate - whether that's directly to the creditors, or to the person who arranged and paid for the funeral.

If beneficiaries wish to gift some of their pecuniary gifts to others, then that's down to the individual beneficiary, and would be a very kind gesture. It's not something that anyone should expect a beneficiary to do.

What sort of travel expenses are you talking about - and how much? (just out of interest).

Keep_pedalling

I am sure they could never be deducted. You can only deduct reasonable funeral expenses so nothing for travel or a big splash on food and booze for a wake.

Unless the will sets aside a sum of money for this specific purpose, then nothing should be taken from the residual beneficiaries to pay for this.

thrifty_pete

The travel costs would be perhaps £1000 total for five mourners some of whom have to take flights as they live overseas.
According to the HMRC site, the permitted cost of catering at a funeral seems to vary depending on the wealth / lifestyle of the individual. A fairly modest funeral I went to had food and drink costs of £40 a head, (dinner with beer / wine) but you could easily spend £100 a head and have 100 guests adding up to the price of a wedding! Perhaps it depends on culture / religion too, as to whether much is eaten or drunk at a funeral?

Flugelhorn

even the £40 sounds a lot - I had people back to local hotel after a funeral - it was Saturday afternoon and there were sandwiches / salads / tea and coffee for £8 / head. I catered for 30 - not sure how many went to the hotel possibly a few more but I was charged for the 30.

Brynsam

thrifty_pete wrote: »

I am sure I read in a newspaper article on funeral expenses that the travel costs for guests / mourners at a funeral could be deducted from the estate. After trawling gov.uk it seems not to be the case, or perhaps it was possible before 2010?
In my case, it is likely after transferring the married partner's unused "tax-free threshold" there will not actually be any Inheritance Tax (IHT) to pay. In that case, it would be up to the beneficiaries whether they are happy to pay the travel expenses of mourners? HMRC won't care about funeral expenses if the estate would not be liable for IHT?

You 'read it in a newspaper'...Perhaps reading HMRC's Inheritance Tax Manual might be a better bet: https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10379

Yorkshireman99

thrifty_pete wrote: »

I am sure I read in a newspaper article on funeral expenses that the travel costs for guests / mourners at a funeral could be deducted from the estate. After trawling gov.uk it seems not to be the case, or perhaps it was possible before 2010?
In my case, it is likely after transferring the married partner's unused "tax-free threshold" there will not actually be any Inheritance Tax (IHT) to pay. In that case, it would be up to the beneficiaries whether they are happy to pay the travel expenses of mourners? HMRC won't care about funeral expenses if the estate would not be liable for IHT?

Estates are not expected to pay travelling expenses certainly not of this size. Attendance at a funeral is the responsibility of the individuals. The executors need to understand that they should not agree to this no are the beneficiaries obliged to agree nor should they even be consulted.

buildersdaughter

I hesitate to contradict knowledgeable people here, and am happy to be told that it has changed since 2010. But I know (because I was one of the executors) that we put down £2,000 for one mourner's expenses, were allowed to take it out of the estate, and set it against IHT.

sheramber

deduction for funeral expenses did indeed change in 2010

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10375

However, travelling and accommodation were not generally allowable

The travelling and accommodation costs (IHTM10379) of mourners are not generally allowable.

Funeral expenses (box 81): travelling and accommodation expenses

This is one of the areas where you are most likely to challenge the expenses claimed. An executor or administrator is under a duty to have the deceased’s body buried (or to arrange cremation) and their reasonable expenses for doing this are allowed. But the travelling expenses of the personal representatives or accommodation costs of mourners are not allowed You should disallow any claimed if there is worthwhile tax at stake. This also applies to the travelling and accommodation expenses of members of the immediate family.

buildersdaughter

Thank you. I know this was all above board, and was the considerable expense of getting a young adult, close family member, home from a distant and difficult place.
I know it doesn't help OP.
However, it does seem to me, that as long as all beneficiaries are in agreement, and there are no other issues, then it can be paid, but not allowed against IHT.

I can see that it is the kind of 'expense' that could be manipulated and misused, but I am so glad we were able to book travel and flights without worrying.