Using POA to pay funeral costs prior to informing bank of death.

Yamenja

If one held POA for someone's finances and property and is also the executor on the will and the sole beneficiary of the will, apart from a couple of small gifts, what's the worst that can happen if you use the POA to cover the funeral before telling the bank that the person died? I know in theory the bank will release funds for funeral payment even if the account is closed because of the death, but the funeral directors seem to expect some payment upfront and the remainder soon after, while the bank seems to expect an invoice before they are willing to release the funds. I am reluctant to max out my credit card to cover the cost and frankly tempted to use the POA one last time for this expense, as I am the only person who could contest my doing so. I get that it's technically wrong, but tbh I have a preferred use for the credit card and cant apply for a loan for at least another month as I live on a very small occupational pension and won't receive my state pension, which would make me eligible for a loan, until towards the end of August. Has anyone been in a comparable position? I havent applied for probate yet, or even registered the will with the probate office.

Keep_pedalling

There is no need to do this, as long as the bank account does not contain many tens of thousands, the bank will release the funds to the executor without probate so in most cases you can obtain funds for funeral costs very quickly. 

p00hsticks

I agree with keep pedalling - the funeral director we used didn't expect any payment up front and gave us a reasonable time (I think eight or nine weeks) after the funeral to pay the invoice (which they didn't send until after the funeral had taken place). And the bank was quite happy to write out a cheque directly to the funeral director on sight of the invoice without us needing to have probate etc.

Obviously in order to do so they do need to know that the account holder has died though. I think by delaying in telling them (they'll probably need sight of a death certificate, and possibly sight of the will and your id to show you are an executor) you are probably risking further complications and/or suspicion.  

Robin9

You can't use the POA - that will have ceased on death.

When I handled my MIL's funeral arrangements on behalf of the family no upfront or deposit was asked for. When all the requirements were known the FD's produced a invoice which included a prompt payment discount which I gave to the executor who took it to the bank who paid it without question.

74jax

When you come to close the account and give the date of death and death certificate they will see transactions after the date of death and do further investigations.

You can just take the death cert in now and probably close and transfer the funds straightaway (make a bereavement appointment).  Mine with the Halifax was done in a day and online as it was during lockdown.

If the person has died, you don't have Poa so a bit confused on that comment. 

Flugelhorn

I have arranged 2 funerals where significant payments were required upfront - £700 for the first which was part payment and £1300 for the second  which was the total payment for a direct cremation - the money came out of the estate as did the balance for the first funeral but the initial payments had to be made

sassyblue

Ask the funeral home to produce a bill for the deposit they require and take that to the bank explaining.

Your POA ceased upon death and should be returned to the Office of The Public Guardian for cancelling.

badmemory

Go to a different funeral director who knows what they are doing would be my first choice.  Any that know their stuff will know that banks will pay out & they are not going to get done.

Gers

I closed my late DM's current account online last month. Had to upload her death certificate and a certified copy of her will. Once I had done that the funds were in my own account, with the sane bank, the next day so I was able to cover the cost of cremation. 

I hope that you find the process as smooth as I did. 

Yamenja

Thanks so much for all the helpful replies. The death was relatively sudden and the care home wanted me to arrange collection asap so the choice of funeral director was based on ones Id looked at when considering buying a funeral plan and was with a local company that is affiliated with the Co-operative. They want over £2,000 within 2 days and another £2000 (roughly) within a fortnight. My savings weren't enough to cover it and I was worried about the interest on a large credit card debt. Nationwide (who most of the deceased's funds were with) seemed to suggest that they would only release funds directly to the funeral director which of course would not be done quickly enough to secure arrangements with the massive deposit demanded, but having spoken to them online I see that, as has been said, as long as the final invoice plus proof of my paying it is produced, they will be willing to release the funds to me. Phew. I did realise that the POA was no longer valid, but was considering using it anyway as an easy solution which would not be contested, but was also  uneasy about it and would also hate to do anything that would impede the probate process, thankfully the situation is not as impossible as initially looked. Apologies for being slow to respond, I had assumed MSE would notify of replies, but that didnt happen. I will check my preferences...! Thanks again all.