Crowdfunded Funerals On The Rise As Undertakers’ Fees Soar

With the average cost of a funeral now standing at £4,271, families are struggling to find the money to arrange for their loved ones’ burial or cremation.

The Competition and Markets Authority launched a market study in 2018 which revealed funeral costs had increased by two-thirds in the previous ten years.

For those who can’t afford it, the local authority may offer means-tested help for a funeral in some circumstances, or even arrange a basic cremation in the event that no-one else is willing or able to arrange one. In that case, they would seek to recoup their costs from the estate at a later date.

Crowdfunding platform, Just Giving, saw a one-third rise in crowdfunding appeals for funeral expenses in 2017/18. A page on another similar platform, Go Fund Me, was opened recently for the family of footballer and reality TV celebrity Mike Thalassitis after he died unexpectedly. The fund was closed after a day, having raised £5,000.

Most crowdfunding appeals are started for younger decedents who have died suddenly leaving young families and little spare money – but it is not just the younger generation who pass away with no Will, life insurance or estate planning in place. Funeral costs become due at the time of making the arrangements, although some firms may delay payment if there are sufficient funds in an estate. But for those who haven’t made plans and where there is no money available, finding thousands of pounds can be impossible.

As people become more familiar with crowdfunding, it is becoming more acceptable to ask friends and relatives for help in this way. At a time when many want to do something to help the bereaved, it’s a practical option that can really relieve the financial pressure.

With advance payment for funerals becoming an accepted way to arrange a burial or cremation, particular for older individuals, the government is concerned about the amount spent by consumers in pre-payments. An ITV Tonight investigation revealed that bereaved relatives want regulations introduced for the industry. The Funeral Planning Authority says that consumers have pre-paid a staggering £4.3 billion for funerals to an industry that is not currently subject to any regulation.

Personal finance experts suggest buyers carefully check the details of what the payments will cover and also make sure their families are aware of the funeral plan.

As a Will writer, do you think pre-paid funerals are a good idea? Or should consumers wait until the industry is properly regulated?