What Funeral Costs can I claim?
What costs can be incurred?
In the UK, funeral costs can be claimed from the deceased’s estate, provided they are deemed reasonable expenses. The estate includes any property, savings, or other assets left by the deceased, and these funds can be used to cover funeral costs before the money is given to the beneficiaries named in the Will or under the intestacy.
It’s important to keep costs reasonable: an extravagant ceremony could be contested by beneficiaries if it significantly reduces the estate's value. When the estate is insufficient to cover funeral costs, family members may need to contribute, but they can apply for support with this.
Are funeral costs taken off for the Inheritance Tax (“IHT”) Calculation?
Yes, they are a deductible expenses. However, similarly to the “reasonable” requirement above, there are rules about what can be deducted for tax purposes.
What can be deducted for IHT purposes?
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Cost of a reasonable service itself, even if abroad
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Cost of transport of a body back to the UK and embalming
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Cost of a reasonable coffin
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Cost of a minister
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Cost of reasonable flowers
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Cost of a reasonable wake
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Cost of a reasonable gravestone, but not necessarily a memorial (such as a plaque)
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In very limited circumstances, mourning expenses
What can’t be deducted for IHT purposes?
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Travel and accommodation to and from the funeral for all
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New, dark clothes for the funeral
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Any unreasonable expenses
In summary, you can claim your expenses back from the estate for a funeral, but they must be reasonable and should be agreed by the personal representatives (executors), who may want to agree the expenses with the beneficiaries too. Some expenses can be deducted for tax purposes too, but not all, so it is important to be aware what can be deducted.
If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in the free Contact Us form and we will get in touch as soon as possible.
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