When a person passes away with a valid Will appointing an Executor, the Executor will typically make the funeral and burial arrangements as part of administering the deceased estate. An Executor is responsible for dealing with the deceased person’s assets, liabilities and other estate administration matters.
A common question is whether funeral expenses can be paid from the deceased person’s estate, particularly where someone other than the Executor has paid for the funeral, burial or cremation.
Generally, funeral expenses are payable from a deceased estate. However, the amount that can properly be recovered will depend on the circumstances. There is no automatic right to reimbursement for every expense incurred.
Key takeaway: Funeral, burial and cremation expenses may be recoverable from a deceased estate, but the costs generally need to be reasonable in the circumstances. The wishes of the deceased, their religious and cultural beliefs, the circumstances of the family and the size of the estate can all be relevant when determining what is reasonable.
Who is responsible for arranging a funeral?
Where a person dies leaving a valid Will that appoints an Executor, the Executor will typically make the funeral and burial arrangements as part of administering the deceased estate.
The Queensland Public Trustee explains that a Will can include a person’s wishes for their funeral, as well as appointing the person who will administer their estate.
A Will may therefore contain the wishes of the deceased regarding their intended funeral arrangements. These wishes can provide important guidance to the person making the arrangements, although funeral wishes should be considered in the context of the circumstances of the estate.
However, it is not always the Executor who pays the funeral costs. Occasionally, a family member or another person may arrange the funeral or incur costs associated with the burial or cremation.
Can funeral expenses be paid from a deceased estate?
Generally, funeral expenses are paid as part of the administration of a deceased estate. The Queensland Public Trustee identifies funeral expenses as an expense to be paid during the administration of a deceased estate.
Queensland succession law also recognises funeral expenses as an expense associated with the administration of a deceased estate. The Succession Act 1981 (Qld) contains provisions dealing with funeral, testamentary and administration expenses.
However, this does not mean that every amount spent on a funeral, burial, cremation or memorial will automatically be reimbursed.
Where a person other than the Executor has paid funeral expenses, they may be able to seek reimbursement from the estate. The key question is whether the expense was reasonable in the circumstances.
What makes funeral expenses reasonable?
What is considered “reasonable” will depend on the particular circumstances of the deceased and the estate.
Relevant considerations may include:
- the amount spent on the funeral, burial or cremation;
- the wishes of the deceased;
- the religious beliefs of the deceased;
- the cultural considerations applicable to the deceased and their family;
- the circumstances and wishes of the deceased’s family; and
- the overall size and circumstances of the estate.
This means that an expense that may be considered reasonable in one estate may not necessarily be reasonable in another.
| Factor | Why it may matter |
|---|---|
| Cost of the funeral | The amount spent should be considered in the context of the circumstances and the estate. |
| Wishes of the deceased | A person’s expressed wishes about their funeral may be relevant when assessing whether particular expenses were reasonable. |
| Religious and cultural beliefs | Religious and cultural practices may affect the type and cost of funeral or burial arrangements that are appropriate. |
| Family circumstances | The circumstances and wishes of the deceased’s family may also be relevant. |
| Size of the estate | The amount of the funeral expense can be significant when compared with the value of the estate. |
A Court decision about reasonable funeral expenses
In one Court decision, the issue was whether the son of the deceased should recover the full amount of the funeral that he had arranged.
The total cost of the funeral was just under $25,000.00. This included the funeral, catering for the funeral, the burial plot and a very extravagant and “ornate headstone with a candilli in which candles and other religious items could be displayed”.
The estate was valued at approximately $160,000.00, meaning that the funeral costs represented a large proportion of the estate.
The deceased’s second wife, who was the administrator of the estate but did not arrange the funeral, opposed the extravagant nature of the cost. She favoured an amount of approximately $6,000.00 to $8,000.00.
The Court ultimately ordered that the son be reimbursed for the full cost, taking into account the particular circumstances of the deceased.
This example is important because it demonstrates that the reasonableness of funeral expenses cannot necessarily be determined by applying a fixed dollar limit. The particular circumstances of the deceased, their family and the estate can all be relevant.
What does this mean for funeral expenses?
The decision demonstrates that the fact that a funeral expense is substantial does not, by itself, necessarily mean that the expense cannot be recovered from the estate.
At the same time, the decision should not be understood as creating an automatic right to reimbursement for expensive funeral arrangements.
The circumstances of each deceased person and estate need to be considered when determining whether an expense is reasonable.
This is consistent with the broader process of deceased estate administration. The Queensland Public Trustee notes that funeral expenses are dealt with before the estate is distributed to beneficiaries.
What should you consider before making funeral arrangements?
Anyone making funeral arrangements, whether they are the Executor or another person, should act reasonably and consider the circumstances of the deceased and their estate.
In particular, it is sensible to consider:
- any funeral wishes expressed by the deceased;
- the deceased’s religious and cultural considerations;
- the wishes and circumstances of the deceased’s family;
- the likely cost of the proposed arrangements; and
- the overall value of the estate.
Keeping invoices, receipts and other records of funeral expenses can also help explain the costs incurred if questions later arise during the administration of the estate. The Queensland Public Trustee advises that estate administration records should include details of the financial information and costs and expenses associated with finalising the estate.
Is there an automatic right to recover funeral expenses from an estate?
No. There is certainly no automatic right of recovery against the estate for every funeral expense incurred.
Whether an expense can be recovered will depend on the circumstances and, in particular, whether the expense is reasonable.
This is particularly important where a family member has arranged a funeral without consulting the Executor or other interested parties, or where the arrangements are significantly more expensive than might otherwise be expected.
Frequently asked questions about funeral expenses and deceased estates
Who pays funeral expenses when someone dies?
Funeral expenses can generally be paid from the deceased estate where they are properly payable expenses of the estate. The Queensland Public Trustee includes payment of funeral expenses as part of the process of administering a deceased estate.
However, a family member or another person may initially pay the costs and later seek reimbursement from the estate. The amount that can be recovered will depend on whether the expenses are reasonable in the circumstances.
Can a family member claim funeral expenses from a deceased estate?
A family member who has paid funeral, burial or cremation expenses may have a claim for reimbursement from the estate. However, there is no automatic right to recover every amount spent. The reasonableness of the expenses and the circumstances of the deceased and estate will be relevant.
Are headstone costs paid by the deceased estate?
A headstone or other memorial may form part of the costs associated with a funeral and burial. However, whether the cost can properly be recovered from the estate will depend on the circumstances and whether the expense is reasonable. The Court decision discussed above demonstrates that the circumstances surrounding a particular memorial can be relevant.
What happens if the family disagrees about funeral expenses?
If family members disagree about whether funeral expenses are reasonable, the issue may need to be addressed as part of the administration of the deceased estate. Obtaining legal advice can help the parties understand their respective positions before a dispute escalates.
Where disagreements extend beyond funeral expenses and concern how an estate should be distributed, other estate dispute processes may also become relevant depending on the circumstances.
Need advice about funeral expenses or a deceased estate?
Funeral expenses can become a source of disagreement, particularly where a family member has paid the costs or where the arrangements are significantly more expensive than other family members expected.
If you are unsure whether funeral expenses can be recovered from a deceased estate, or you are involved in a disagreement about the costs, contact Wakerley Legal about your deceased estate. Our team can advise you about the administration of the estate and your options in the circumstances.