Question regarding financial help for funeral / Over draft question.

Markymcmarker

Hi

I hope this is okay to ask here and hope this doesn’t sound cold because I feel it for asking

I live with my mother (48) and have done for 6 years. My mother was diagnosed with cancer 3 months ago. At first they said it hadn’t spread but 3 weeks later they it had and it was very aggressive. Shes quickly getting worse. They’ve said she has about 2 months but I don’t think we’ll have that much time with her.

I’m helping getting her affairs in order. She has done a will and leaving the house to me (only child).
The house is worth £140k-£150k (last valued last year). She has no savings at all and no funeral plan.
She also has £1,500 over draft.
I am on Universal credit due to illness (Fibro, M.E) but no PIP.

I am somewhat panicking as she has requested being buried with my father (The plot has already been purchased). It looks like it’ll cost 4-5k. I am worrying because I don’t have 6-7k to pay everything off and selfishly this is our family home I don’t want to lose it.
She said she had a funeral plan but on inspecting it looks like it’s only for £1000.

Question 1: Online it says if you’re receiving benefits, you can request help towards funeral costs of a parent. Due to her owning a house will I be able to get any help in paying for the funeral or will the house have to be sold? A friend has said they'll help me out but only for 2k (Which is lovely of them but i still have to find the rest) 

Question 2: Will the bank request the house sold to pay off the overdraft? I read online most banks will ‘wipe’ the over draft if it’s below a certain amount (£1000) Is this true?

once again I hope this doesn’t sound cold. My brain just needs to work stuff out like this rather than leaving it to last min.

Markymcmarker

Additional: I have £420 in savings. 

RAS

Sorry for the situation.

The estate won't be insolvent, so you'd need to find someway paying the extra.

One option might be a direct cremation which would be affordable followed by interment of the ashes with your father? It may or may not be appropriate to discuss this with mum? 

The other is that you DIY the funeral with the cheapest coffin and transport in the back of an estate or van? You would need to pay interment and gravedigger fees plus some strong mates and straps to lower the coffin. If you plan that I'd suggest a fairly swift burial, so you need to talk to the graveyard managers urgently. The only similar funeral I know was at a woodland cemetery.

The bank might agree to write off the overdraft but there's no guarantee. You'd need to talk to the bereavement department after she dies.

Longer term, you are going to have to think very hard about the house. Can you afford to maintain it going forward?

But right now try to spend as much time with mum as possible and get some good memories. Have you spoken to the local hospice or MacMillan? They may advise you that she could have longer.

Do you, or she have friends with a car who could take her to favourite lock places? Any family or friends to whom she wants to say goodbye?

elsien

I don’t think you will be eligible for the funeral help due to being on benefits because you are inheriting a house. The house would only be exempt from the estate in terms of the funeral help if you were a partner of the person who passed away. 

https://www.gov.uk/funeral-payments

If your mother can’t afford to be buried with your father without the house having to be sold, and she wants to leave the house to you, then something has to give.
Perhaps  she might agree to look at being cremated and having her ashes interred with your father instead? 

Keep_pedalling

Although your mother has requested a burial in her will it is a wish with no legal obligation for you to do so , so don’t get yourself into debt by sticking to these wishes. You could opt for a cremation with her ashes being interred with your father which would be a lot cheaper. 

If your mother was able to transfer the house to you now, it would avoid you needing to apply for probate and would also really leave her estate insolvent. This is relatively easy to do providing the property is already registered with the land registry (link to check this below if your are in England or Wales)

https://www.gov.uk/search-property-information-land-registry

p00hsticks

Keep_pedalling said:

If your mother was able to transfer the house to you now, it would avoid you needing to apply for probate and would also really leave her estate insolvent. This is relatively easy to do providing the property is already registered with the land registry (link to check this below if your are in England or Wales)

https://www.gov.uk/search-property-information-land-registry

Although I agree that doin so would avoid the need for probate, given the mothers short life expectancy, wouldn't the value of the property still form part of her estate as a gift given within 7 years of death though ? 

Section62

p00hsticks said:

Keep_pedalling said:

If your mother was able to transfer the house to you now, it would avoid you needing to apply for probate and would also really leave her estate insolvent. This is relatively easy to do providing the property is already registered with the land registry (link to check this below if your are in England or Wales)

https://www.gov.uk/search-property-information-land-registry

Although I agree that doin so would avoid the need for probate, given the mothers short life expectancy, wouldn't the value of the property still form part of her estate as a gift given within 7 years of death though ? 

Doesn't sound like IHT is the issue here.

I agree with the comment that long-term affordability of the property might be an issue though.

Keep_pedalling

p00hsticks said:

Keep_pedalling said:

If your mother was able to transfer the house to you now, it would avoid you needing to apply for probate and would also really leave her estate insolvent. This is relatively easy to do providing the property is already registered with the land registry (link to check this below if your are in England or Wales)

https://www.gov.uk/search-property-information-land-registry

Although I agree that doin so would avoid the need for probate, given the mothers short life expectancy, wouldn't the value of the property still form part of her estate as a gift given within 7 years of death though ? 

It would but the value is way below the NRB so is not a concern here. 

mta999

I agree with transferring the house to you now and avoiding the hassle of needing probate.