Arranging a funeral can be daunting at a time when you’re feeling vulnerable.
It may be that you’ve overlooked possible sources of funding to help towards the costs, and that may include money from the estate of the person who has died.
Carefully look through the deceased’s paperwork to try and identify all the different accounts they may have had and to see if anything suggests they had any insurance policies or private pensions (not the state pension).
Did you know?
- The first priority for any money left by the deceased person is to help pay towards the cost of their funeral. This comes before any rent, utilities etc. If, after this, there is insufficient money or assets in the estate to pay off any debts, then they would be paid in priority order until the money or assets run out. Any remaining debts are likely to be written off. Find more advice here: Dealing with the debts of someone who has died
- In order to release money from a bank account, you can take a copy of the death certificate and a copy of the funeral bill to the bank. Many banks will release the money directly to the funeral director (if you are using one).
- You don’t need to wait for probate or the will (if there is one) to be read.
Checklist
- Is there any money in any of the deceased person's bank/building society/PO/credit union accounts?
- Is there an insurance policy (life or funeral) or a pre-paid funeral plan?
- Is there a private pension? This could be a work-related pension (set up by an employer) or a personal pension (set up by themselves). Besides any letters or statements, payslips can also be helpful as they will show whether the employer paid any money into a pension. If you don’t find anything, but think they may have had one, you can find pension scheme contact details by searching for the name of an employer on the gov.uk website.
- If they were employed at the time of death they may have been eligible for a ‘death in service benefit’ from their employer.
- Is a tax refund due? The person who has died is entitled to a full personal allowance in the tax year of their death regardless of when they die. If they had already paid some tax then a refund may be due - contact HMRC to find out. The Low Incomes Tax Reform Group’s also has useful information about tax when someone has died.
Tip - letting people know
Life Ledger and Settld. are online platforms which enable you to notify many companies about a death from one place. They are free, secure, and easy-to-use.
Charles' story
Charles took responsibility for arranging his cousin's funeral but was not eligible for any state benefits.
However, when sorting through paperwork, details of two insurance policies were found. A Down to Earth advisor contacted the insurance provider and helped Charles complete the necessary paperwork. On New Year’s Eve he received a cheque from the insurance company with sufficient funds to pay for the service he wanted.
Frequently asked questions about accessing money from the estate of someone who has died.
Can I use the deceased person's bank account to pay for their funeral?
Any money left by the person who died must be used to pay towards the cost of their funeral, before any rent, utilities etc. are paid. The only exception to this is where they left any secured loans (such as a mortgage), in which case these must be paid first. If, after this, there is insufficient money or assets in the estate to pay off any debts, then they would be paid in priority order until the money or assets run out. Any remaining debts should be written off.
To release money from a bank account, you can take a copy of the death certificate and a copy of the funeral bill to the bank. Many banks will release the money directly to the funeral director (if you are using one). There is no need to wait for probate.
What is the ‘Estate’?
The ‘Estate’ is everything owned by a person who has died. This could be made up of money held in cash or accounts, money owed to a person who has died, any shares and investments, property and personal belongings of value (for example their car or jewellery).
What is probate?
Probate is the legal process of dealing with someone’s estate after they have died. It is not always needed, and you can check with any financial institutions (for example banks or mortgage companies) to find out whether probate will be needed to access their assets. Each organisation has its own rules and policies.
You can find more information about probate, and how to apply for it, on the gov.uk website.
How can I pay for a funeral before probate?
If there is money in the deceased person's accounts, you can usually get the bank to release the money directly to the funeral director. Take the death certificate and funeral invoice to a branch of the bank and they can pay the funeral director directly. If you cannot attend a branch, most banks are now able to do this online. There is no need to wait for probate.
Does life insurance pay for a funeral?
Yes, life insurance payouts can be used to help cover funeral costs. A lump sum paid out upon death can be used by beneficiaries to pay for funeral expenses although it doesn't have to be used in this way.
Do funeral costs come out of the estate?
Yes, funeral expenses can be paid from the deceased person's estate and are often the highest priority except for some secured debts such as mortgages. The executor or administrator of the estate (who is responsible for managing the deceased person's affairs) can use the deceased person's assets, such as bank accounts or property, to cover funeral costs.
Funds from someone’s property, for example, may require a grant of probate before they can be released.
I only have an interim death certificate, will the bank accept this?
Many banks will accept interim death certificates, coroner’s certificates, and non-UK death certificates that have been translated into English to release money for funeral expenses. Check with the bank whether they can accept an interim certificate and what other documents, such as proof of identification, they need.