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Funeral costs in a trust so don't affect benefits limit?

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I want to be buried. I want to be buried in my towns cemetery. I want a nice headstone.

I'm 35. I could live another 50 years? So Pre-Paid plans are out the question? I don’t want to use any of my life savings to pay for my funeral. I want my savings half/half to go to my male lover and my sister. But this might change over time?

I can’t save funeral money in separate account as being disabled and on benefits I can only have a certain amount in savings (£16.000) before benefits stop. I would like all of my assets to go to my male lover and my sister and not for them to pay for funeral. I was wondering if I could have funeral costs in a trust so I can save for it without affecting benefits.

Or do you think is it too early to plan my funeral and I should wait until I’m 55 and then arrange a Pre-Paid funeral plan?

What other options do I have?

Comments

  • poppy12345
    poppy12345 Posts: 18,209 Forumite
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    I want to be buried. I want to be buried in my towns cemetery. I want a nice headstone.

    I'm 35. I could live another 50 years? So Pre-Paid plans are out the question? I don’t want to use any of my life savings to pay for my funeral. I want my savings half/half to go to my male lover and my sister. But this might change over time?

    I can’t save funeral money in separate account as being disabled and on benefits I can only have a certain amount in savings (£16.000) before benefits stop. I would like all of my assets to go to my male lover and my sister and not for them to pay for funeral. I was wondering if I could have funeral costs in a trust so I can save for it without affecting benefits.

    Or do you think is it too early to plan my funeral and I should wait until I’m 55 and then arrange a Pre-Paid funeral plan?

    What other options do I have?


    Savings of less than £6,000 are ignored for means tested benefits. Savings of more than this then there's a deduction of £1 per week for every £250 over than amount. For Universal Credit there's a £4.35 per month deduction on savings over £6,000. Savings of more than £16,000 excludes you from means tested benefits.
    Another thread of your suggests you maybe claiming PIP, which isn't means tested.
    Regardless of where your savings are they will be counted for means tested benefits, which includes a trust for this reason.
    I must be honest when i was 35 a funeral plan was the last thing on my mind, although i appreciate that no one can predict the future.
  • JGB1955
    JGB1955 Posts: 3,573 Forumite
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    What other options do I have?

    How about taking out a life insurance policy?
    #2 Saving for Christmas 2024 - £1 a day challenge. £325 of £366
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
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    Have you found out the costs of the plot at the cemetery? Perhaps you could find out from them and arrange a purchase directly so you have that part in place. 

    To be honest, whether you pay now or the funds come from your estate later, it is money that will not go to them. The residual assets will be divided according to your will once your estate is settled and funeral costs are paid, so focus on getting your will in order rather than the funeral.

    As an unmarried partner, your lover will have no claim to your estate without a formal will and your assets would be divided according to intestacy rules. 
    Some days, it's just not worth chewing through the leather straps....
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  • tacpot12
    tacpot12 Posts: 8,170 Forumite
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    Life insurance is the best option for you. It will be very cheap while you are young. If you are claiming PIP and have a disability you may not be able to get life insurance or you may find that it is even cheaper for you. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • mad_spaniel
    mad_spaniel Posts: 220 Forumite
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    My mother paid in advance for a Coop funeral. When she died some years later, the funeral directors  had lost her documents, and said they didn't usually get prepaid funerals paid for so far in advance. So you would probably have to keep all your documentation for years 'just in case' this happened when the the time came.
  • gbhxu
    gbhxu Posts: 352 Forumite
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    I say invest in your own private pension.



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