Money Matters

Topics

1. Funerals can be expensive. How will I know if I can afford it?
2. Can I get any assistance with the funeral costs?
3. Estate Administration & Probate
4. Do you need probate?
5. What is probate?
6. Useful sources of information

Funeral Directors who are members of the National Association of Funeral Directors abide by a Code of Practice which ensures that they treat their clients and the public fairly. Members are required to have price lists available showing the cost of the services they provide. To ensure you obtain the best value possible, you should contact at least two Funeral Directors in your area for an estimate of the funeral costs, or obtain a price list from their office to make comparisons. Do not assume that all funeral firms charge the same prices. If you have chosen a Funeral Director who is a Member of the National Association of Funeral Directors, you will receive a written estimate and confirmation of arrangements before the funeral takes place. This ensures that you are aware of the-~costs of the funeral you have arranged, and forms the basis of the contract between yourself and the funeral firm.

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The following information is purely a general guide to claiming a funeral payment from the social fund. You can find out more about funeral payments from the social fund in leaflets "A Guide to the Social Fund", and "How the Social Fund can help you". If you wish to talk to someone about funeral payments get in touch with your social security office. They can arrange for someone to see you at home if necessary, or at the social security office.

You may qualify for help if there is not enough money to pay for the funeral and you are responsible for making the funeral arrangements and you or your partner receive any of the following benefits:

• Income Support

• Housing Benefit

• Family Credit

• Community Charge Benefit

Check what amount of money is available from the estate of the person that has died, such as money from the bank, building society or post office account. Check any insurance policies, or lump sum payments from a pension scheme.

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In dealing with the deceased's financial affairs, someone has to take personal responsibility for the estate. One of the best pieces of advice is "don’t panic". There is nothing to do with the financial side of an estate that cannot wait until after the funeral.

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A Grant of Probate is only needed when the assets in the sole name of the deceased exceed £5000. Joint assets do not count - any assets held in joint names with the deceased pass automatically to the survivor and no Grant of Probate is necessary. If the sole assets exceed £5000 the grant of probate will usually be necessary.

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A Grant of Probate is a court sealed piece of paper that is accepted in England and Wales as conclusive proof that executors are authorised to administer an estate and the formal validity of a Will and its contents. Where there is no Will a similar piece of paper is issued to the rightful heirs, recognising their title to administer an estate and is known as "Letters of Administration". These pieces of court sealed instructions are the only documents that financial institutions such as banks, building societies, and life assurance and pension companies will recognise before paying out money on an estate. Obtaining a Grant of Probate or Letters of Administration takes approximately three weeks once the correct paperwork is submitted to the probate registry. This process will be delayed if the paperwork is not precisely correct or if there are omissions or irregularities in the Will. Once the grant is issued the administration process can begin.

If you are not confident and the estate is not simple professional help is often the best solution. The task of administering the Estate (personal representative) carries with it personal liability for any loss and it is important that anyone accepting that responsibility will have the confidence and time to deal with the often large volume of paperwork over a long time. Not to mention dealing with the emotional upset and family matters that may arise. Professional help is often the best solution! Once you have decided who will take on the responsibility the following must be dealt with.

1. The estate must be valued as at the date of death

2. Application forms completed for the Probate Registry as well as a detailed return of the asset values and, if applicable, inheritance taxis paid

3 Inheritance tax must be paid before a Grant of Probate can be issued. This may be particularly difficult in large estates as funds may not be available from the estate.

4. Administrator or executors oath must be sworn and if you deal with it yourself you must attend interviews at the Probate Registry

5. The Probate Register will then issue a Grant of Probate and Letters of Administration, a process that may take several weeks

6. Once issued the grant is used to call in all monies, debts paid, and assets distributed according to the Will or rules of intestacy process which takes several months

7. A full account of the estate must be made to the beneficiaries before distribution and before a personal representative may discharge their duties. The process of estate administration is a very responsible task not to be entered into lightly, included below are some useful sources of information to help you.

• National Probate help line: 0800 496-0-866

Helpful advice is available on any aspect of the estate administration including guidance on whether or not you need to obtain a Grant of Probate.

 The Law Society on 020 72421222 

 will recommend a specialist probate solicitor in our area. If you find yourself having to deal with the affairs of a friend or loved one, get professional advice as soon as possible.

"What to do after a death in England and Wales" leaflet D49. 

"How to obtain Probate" Leaflet PA2 

Available from your local social security or citizens advice bureau or the national probate help line above.

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Copyright © 2003  [John Edwards Funeral Directors]. All rights reserved.
Revised: April 05, 2005 .

Send mail to jefd-info@btconnect.com with questions or comments about this web site.
Last modified: October 04, 2005