Funerals can be expensive and the surviving family and friends may find it difficult to cover all of the expenses. Funeral costs can be covered by a number of sources.

Decedent Estate

The estate of the deceased typically covers the costs of the funeral. Access to estate assets may be difficult, as such it is also common for family or friends to pay for the costs of a funeral with the expectation of the estate reimbursing the costs. The person arranging the funeral may be asked to sign a promissory note; That person will be responsible for payment in full, even if the estate cannot cover the funeral costs.

Insurance

Insurance will cover the costs of a funeral, if it was purchased. Funeral plans are not always discussed with family and friends prior to the need for a funeral. It is worth checking if funeral insurance was ever purchased. Be sure to check with the employer of the deceased to find out if funeral insurance was provided as a benefit.

Survivor Benefits

Survivor benefits may assist with the cost of a funeral. Survivor benefits will not typically cover the full expense of a funeral. Common survivor benefits include social security, veterans administration, and associations that the deceased was a member of.

Local Municipality

The local municipality will typically accept financial responsibility if the estate, relatives, and friends cannot pay. Funds provided by a municipality are typically between $500-$1500.

Funeral Collections

Funeral costs can often exceed the funds available from the estate and survivor benefits. Funeral homes will send unpaid expenses to collections. Make sure you understand your obligations when signing a promissory note for a funeral.