Can your family afford for you to die?
The 8th annual Sun Life report (issued in 2014) on the cost of dying in the UK showed the average 2013 cost of a funeral and all the associated costs of dealing with a death in the family came to a staggering £8,427.
In East Anglia the average 2013 cost for a very basic funeral was £3,704. Add costs of a memorial, flowers, catering (£2,006) and discretionary estate administration fees of £2,160 and you are already heading for £8,000. A grave plot will add another £600 to £1,000 plus, depending on the cemetery.
Many additional fees can bump that up rapidly – estate agent fees, house clearance costs, additional legal costs if a Will is not in place, is contested or is out of date, executor expenses, etc., etc.
The data shows that between 2004 and 2013 basic funeral costs alone rose by 80% – well above the British rate of inflation. If this level of price rise continues, the funeral fees alone for a basic funeral in East Anglia will reach £6,660 by 2022 – just seven years from now. And that does not cover all the other associated costs. Will your family be able to write a cheque for that sort of amount without any problems?
Despite 47% of the sample taking out a loan to help with costs, one in seven surveyed really struggled with raising funds, indicating that over 100,000 families a year in the UK face huge difficulties in paying the cost of a family member’s funeral.
For very wealthy families, these costs may not be an issue, but remember, in many cases it is the parents who have a substantial estate and it is their much younger children who will have to pay out the funeral costs – before the Will is even read or the estate is finally divided at probate. The delay between the death and any money in the estate being released to family members may take several months or even longer, depending on the clarity of the Will and the complexity of the estate. For many less wealthy families, this can turn into a nightmare of high interest short term loans and unbudgeted borrowing.
In the Sun Life survey 57% of the sample had made some financial provision for funeral costs, with funds set aside to cover or to contribute to costs. 24% of the sample had taken out a pre-paid funeral plan, which will usually cover all the costs of the funeral itself, but not including catering, memorials, announcements etc.
If you are concerned about the future costs of a funeral, Just Wills & Legal Services Ltd can help by setting up a pre-paid funeral plan for you. This will effectively freeze costs at today’s prices.
Our Just Wills & Legal Services Avalon funeral plans start from only £3,595 and we also offer a range of one year, five year and ten year instalment options.
Call us now on 01223 655 646 to arrange a chat with a consultant and find out how easy it is to stop worrying about your funeral costs!
All funds are held in a fully regulated investment trust supervised by independent trustees and subject to annual audit.
If you don’t want to leave your family in a hole when you go – contact us now for a chat or home visit to explain our range of funeral plans.
We’ll do the leg work so that you can relax, knowing that your family won’t face any future financial embarrassment.