Q. I live on my own and have a small few bob put away. I have certain small gifts I want to make to relatives when I pass away, but I am worried there would not be enough left over to cover funeral expenses. I have a burial plot left aside, and a will made. I also want to make sure that a sum is left for masses and the like. My family live abroad, and while we are close, I don’t think they would be able to look after all the funeral itself. I have some funds with the Credit Union, would they assist? I saw that you can take out funeral expenses insurance – could I put a friend’s name in it? What would be the best option?
Dear Reader,
Firstly, you should read your will to ensure that you appointed an executor to make sure that your wishes in your will are carried out. Most wills provide that your funeral and related expenses are discharged from your estate first. You can set out what you want to happen with regard to your funeral, including directing which funeral directors you wish to use, which church you would like your funeral conducted in, and where you would like your remains to be buried.
You can make a bequest in your will for a sum of money to be left to your Church for the saying of masses. Traditionally, this sum is not a large lump sum.
Depending on your circumstances, your executor may need to extract a Grant of Probate. This can sometimes be a lengthy process. However, your Bank or Credit Union will generally release funds directly to your executor in order that funeral expenses can be discharged.
If your savings are with the Credit Union, you can also make a nomination to any person. This allows the Credit Union to release the maximum amount of €23,000 to that named person. It is important to note that this nomination is a gift, and the Credit Union cannot attach conditions to it – such as the payment of funeral expenses. The person you nominate would usually be a person you put your trust in, and your will could be amended to include a wish that such a person would discharge your funeral expenses.
If there is not sufficient funds to discharge both your funeral expenses and also the full value of various gifts of money you plan to make in your will, the value of those gifts would be reduced in a proportional manner.
Various financial institutions also offer funeral expenses insurance, which is essentially a simplified form of life insurance. Depending on your age and health, you would pay a set sum per month which would guarantee a lump sum on your death.
Every person’s circumstances are different, and you should discuss your various options with your financial advisor or solicitor.
