Paying the funeral bill

Responsibility for paying the funeral account lies with the personal representatives, unless there is a pre-paid plan (see below).

Expenses should be “reasonable”, unless a more elaborate funeral is authorised. For more on this and about arranging a funeral, see our guide “Checking the will for funeral directions and arranging the funeral”.

Paying the funeral bill from a bank account

Most funeral directors would like the bill to be settled within a month or so. If you are a personal representative starting the probate process, you may find that the bill is due before you can obtain a grant of representation, and therefore before you have access to the deceased’s funds.

Helpfully, most banks are happy to pay a funeral director’s bill from funds in a deceased’s account, even if the account is frozen (which is usual after death). You can request payment of the bill in writing. Remember to specify the account and to enclose a copy of the funeral bill. If the bank agrees, it will send a cheque for the appropriate amount, payable to the funeral directors.

This is often the most convenient option, but, with your permission, the family may prefer to foot the bill and to claim the money back later from the estate.

If there are any problems or delays, let the funeral director know.

Insolvent estates: what happens if the estate cannot pay the funeral bill?

In the unfortunate event that the deceased’s funds will not cover all the deceased’s debts (in other words, if the deceased died insolvent), an order of priority of payment applies. Funeral expenses are second on the list, behind secured creditors such as a mortgage company. If you are administering an insolvent estate, it is very important that you follow this order of priority. If you find yourself in this situation, we recommend seeking professional legal advice.

VAT on funeral expenses

Services at cemeteries and crematoriums, and the services of a funeral director or minister etc, are exempt from VAT. However, VAT must be paid on flowers, any form of memorial and catering. This should be reflected in the funeral director’s bill.

Pre-paid funeral plans

If the deceased purchased a pre-paid funeral plan during his or her lifetime, this plan should cover most or all costs of the funeral. In this case, there may not be a bill for the personal representatives to settle (it has been paid in advance).