Checking what funds are in the estate of the person who died

The amount you award the client depends on what funds are in the estate of the person who died.

This only applies if the person who died was 18 or over.

If the person who died was under 18, you do not need to find out whether they had any funds. If the client has provided this information, ignore it when calculating their payment.

Funds that you should deduct

You should deduct from the Funeral Support Payment award any available funds in the person who died’s estate.

Available means they can be used to help pay for the funeral. See guidance below on funds that you should not deduct.

In the Funeral Support Payment application form, we ask the client if the person who died had:

  • money in bank accounts that’s available
  • cash
  • an occupational pension
  • a life insurance policy
  • funeral insurance
  • a burial club
  • a funeral grant because they were getting a war pension

If the client answers ‘Yes’ to any of the above, they’ll be prompted to provide amounts in the application.

You should only deduct pensions and insurance policies from the award if they’ve paid out a lump sum that can be used for funeral costs.

You should also deduct:

  • any money from a pre-paid funeral plan that has not been paid in full
  • any sum that has been awarded but is also covered by the funeral plan, for example, the burial or cremation cost

Funds that you should not deduct

The person who died may have a life insurance policy to pay for something specific like their mortgage or their children’s education.

In cases like this, you should not deduct the insurance policy from the Funeral Support Payment award as it is not available to use to help pay funeral costs.

You should also not deduct donations from friends and charitable organisations that have been given to help pay for the funeral.

Benefit arrears

If the funds in the estate are from benefit arrears, do not deduct these from the Funeral Support Payment award.

Benefit arrears means any UK social security payments that were made after the person died. These include:

  • Social Security Scotland benefits
  • Department for Work and Pensions benefits
  • HM Revenue and Customs tax credits
  • Department for Communities (Northern Ireland) benefits
  • other benefits or tax credits paid by UK agencies

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