FUNERAL COSTS RISE

I get the pleasure of talking and writing about all manner of morbid events, however the one I try to avoid is this one. The price of a funeral. It seems so utterly morbid. Yet it is my job to draw these sort of things to your attention, so here is something to think about.

The cost of dying has reached record highs of almost £10,000, fuelled by an increase in elaborate send-offs. Disney-themed funerals where everyone dresses up as their favourite character, all-pink wedding-style ceremonies in a rejection of the traditional black, and a motor-cycle and sidecar in place of a hearse, are just some of the ways that families today are commemorating the lives of lost loved ones. It means funeral costs are now higher than they have ever been, having increased year on year for more than a decade.

When somone dies, it is the case that the cost of the funeral can be offset against the value of the estate, so that’s helpful in reducing the value of the estate and therefore the tax liability (if there is one). However its still money that leaves the estate. Importantly, if there is a surviving spouse, such a cost can be very unhelpful indeed.

It is possible to take our insurance (but if you do, please do so with care) the alternative is to simply ensure that there are sufficient funds set aside. Talk to me about this if it is of concern.