Planning for the inevitable

"I'm not afraid to die; I just don't want to be there when it happens!" 

We may laugh at Woody Allen’s witty observation but the fact is that we don’t like to talk about what will happen after we die.  As a firm of lawyers, we see this only too often in people’s reluctance to make a will.  But planning for something that is, after all, inevitable, is not only good sense but it protects our loved ones and helps ensure things happen as we would wish.

Few people give thought to planning for their funeral but costs have risen faster than inflation in recent years and a funeral plan makes good financial sense.  It will cover the costs of the funeral – whether it is a burial or a cremation – and has the benefit of fixing costs at today’s prices.   The average cost of a funeral in 2009 was £2,733 but this is anticipated to rise to £5,540 by the year 2019.  In a period of low interest rates, any savings that are destined to cover funeral costs are unlikely to keep pace.

As well as protecting your family from the burden of meeting the funeral expenses, there are other benefits.  The funeral plan will not be considered part of your estate for inheritance tax purposes and it is guaranteed to pay out even if the plan holder’s assets were to be frozen at death for any reason.  It also gives you an opportunity to include special instructions regarding how you would like your funeral to be organised.  This is an area that can be difficult to discuss with close family members and a subject that many people never broach. 

The money you pay into your funeral plan is put into the National Funeral Trust, which is an independent Trust Fund managed by a leading UK investment firm.  This is not an investment but it is a secure trust that is guaranteed to meet the costs of your funeral, no matter how much prices rise in the future.  When the time comes, the funeral directors will be paid directly from the fund.  Your relatives will not have to claim back any money, pay money up front or complete any complicated paperwork.

If you would like more information on funeral plan provision, or any other financial advice please contact Paul Chilver on 01206 217614 or email [email protected]