Factsheet No. 9
Who pays for funeral expenses?
Who
pays for the funeral expenses when the deceased has no estate?
Usually the
person who organises the funeral will be held accountable for the costs
involved. However, there are some
ways in which that person can receive money to assist them to meet those costs.
Homicide
Victims
If the deceased
person was a victim of homicide, an interim award may be made by the Victims
Compensation Tribunal to cover the funeral costs.
Contact
Victims Services on (02) 9374 3111.
War Veterans
If the deceased
person was a war veteran or if they are the dependants of a person killed
during service, the Department of Veterans Affairs may be able to pay some of
the costs in certain circumstances.
Contact the
Department of Veterans Affairs on 133 254.
Centrelink
Recipients
There is also a
bereavement payment available from Centrelink. The recipient of this payment can be the spouse of the
deceased or they might be a close friend or relative who looked after the
deceased. Eligibility depends on
prior receipt of Centrelink benefits, by either the deceased or the claimant
and payment may be either a lump sum or fortnightly instalments depending on
the circumstances.
Contact Centre link on 13 10 21
Other Places
Which Might Be Able To Help With Costs:
- The deceased’s employer or union may
have a scheme to assist families of deceased workers.
- The deceased’s insurer, if they have
one, and the person died of an injury which is covered by their insurance.
What Happens
If Nobody Can Afford To Pay For A Funeral
If you can’t
afford to pay for a funeral, don’t organise it. If you organise the funeral you will have to pay. The police can organise a funeral where
the deceased did not have anyone able to pay for their funeral. It will be a very simple and cheap
funeral and the person will probably be cremated. Usually mourners will be allowed to attend but they will not
be able to have an input as to how the funeral is organised. These funerals are called destitute
funerals.
When the
Deceased Person Has Money Or Assets But No Will, Who Pays For The Funeral?
The estate of the
deceased (that is the money or assets left behind) pays for the funeral. If
they have no will, their estate will have to be sorted out before their money
becomes available to pay the costs. This can take a long time, especially if there is a fight over their
money. A person who pays for a
funeral and then hopes to get the money back from the estate does not always
get their money. If you are in the
situation where you need to arrange a funeral for someone with no will, talk to
a lawyer first. It might not be
what you feel like doing at the time but it will be the best thing to do in the
long run. Sometimes, banks will allow payment of the funeral from the bank
account of the deceased upon production of relevant documents, such as the
death certificate, and where the money is paid directly to the funeral service
provider. This can be done even before formal administration, called Probate
(where there is a will) or Letters of Administration (where there is no will,
but an estate), is obtained from the Supreme Court of NSW.
Who Pays For
the Funeral Where There Is A Will?
If the deceased
person had a will and appointed an executor, it is the executor’s
responsibility to arrange and pay for the funeral and other testamentary
expenses. However, the executor can delegate the role of organising the funeral
to someone else, such as the family of the deceased. Where there is an estate (where the deceased had enough
money or assets, called the ‘estate’), the funeral and other expenses would be
paid from the deceased’s estate.