Pre Paid Funeral Plan

[Joybelles]

Both of my parents have dementia and at the moment are still living together in the house they own, as they have savings over the £23,000 ish limit I was wondering if it would be possible for them to purchase a pre-paid funeral plan each?

They looked into this several years ago but at the time I didn't like the idea and talked them out of purchasing, now I am beginning to wonder was it a bad move on my part.

What are the legal implications with regard to future when applying for CHC etc?

Any advice would be appreciated.

 

[nitram]

Finances are not involved in CHC applications, it is solely based on medical needs.

As regards deprivation of capital for LA funding funeral plans are generally accepted but I think it is technically discretionary. The worst an LA can do is regard any payment as notional capital effectively reducing the lower limit of £14250.

If they decide to buy plans do some research, not all plans are accepted by all funeral directors and not all directors accept all plans.

 

[Joybelles]

Sorry, I'm new to all this terminology and trying to get my head round everything.

I mean when you have to start to pay for care once you have below £23,000 ish.

Can you also explain what LA funding is, and what LA abreviation is please also the lower limit of £14250,

Sorry but all this is new to me!

 

[nitram]

With assets of more than £23250 you have to self fund.

The LA start funding when the assessed assets reach £23250, as the assets reduce the LA assumes an income of £1/wk for each £250, or part thereof, the assets exceed the lower limit of £14250.

If the LA consider that there has been deliberate deprivation of assets they can add the amount to the actual capital as notional capital effectively reducing the lower limit, eg if they decide there has been deprivation of £4250 the lower limit becomes £10000.

 

[Cheesecake4242]

Both of my parents have dementia and at the moment are still living together in the house they own, as they have savings over the £23,000 ish limit I was wondering if it would be possible for them to purchase a pre-paid funeral plan each?

They looked into this several years ago but at the time I didn't like the idea and talked them out of purchasing, now I am beginning to wonder was it a bad move on my part.

What are the legal implications with regard to future when applying for CHC etc?

Any advice would be appreciated.

My parents both bought funeral plans last week. My Dad has been in a care home for 3 weeks. Next week he has his financial assessment by the Local Authority. I am sure that they will not consider the plans as being ' deprevation of assets' but I will confirm that next week.

 

[Katrine]

I bought a prepaid funeral plan for my mum this year. It can only get more expensive, so a cash buyer gets the plan at today's prices for future use. The one I bought was underwritten by Golden Charter Funeral Plans, and is protected should my chosen undertaker go out of business.

You should ask for discount if you're buying 2 plans at once.

If you choose traditional burial, a large part of the cost is the graveyard plot, and fees from the council for interment and erection of the headstone plinth. The headstone itself, and the engraving, is expensive. Some undertaker are linked to monumental masons, but others are not and you would have to arrange that separately.

Other burial options, such as woodland burial, can be cheaper, especially in places where grave markers must be very small, or are not permitted at all.

Cremations are cheaper. I think it's about 60% of the cost of burial, but you'd have to check that out.

When buying your plan, think hard about what really matters. There are standard packages, but these should be flexible in terms of what services fit that price band. I found our funeral director to be very helpful and flexible, so I have been able to plan in advance. This gives me peace of mind that we'll do the right thing when the time comes. I wouldn't want to make hasty choices from necessity.

 

[nicoise]

Could anyone here clarify whether they have fallen foul of their powers as an Attorney by purchasing a funeral plan for the donor, with the OPG?

I was always under the impression that it was perfectly acceptable to do this, but it has been suggested elsewhere that it does not benefit the donor, only a potential heir. Which I don't see, as I feel it is wise use of the donor's funds.

Thanks for your opinions!

 

[Katrine]

I had to ask permission, with a written quotation from the funeral director. Under Scottish Guardianship all single purchases over £100 need OPG approval. The OPG had no objection. They did not ask for comparative quotes.

In England and Wales, a deputy might not have to seek approval. I don't know. An attorney wouldn't need approval, would they, unless they are currently subject to OPG supervision?

 

[southlucia]

I was always under the impression that it was perfectly acceptable to do this, but it has been suggested elsewhere that it does not benefit the donor, only a potential heir. Which I don't see, as I feel it is wise use of the donor's funds.

I don't see how it could only benefit a potential heir. After all, this would come from the donor's funds when they die ( assuming they have funds left), which would be taken before any inheritance. Surely a pre-paid plan made in advance, could potentially save money.

As a deputy, I took out a pre-paid plan three years ago, without consulting the OPG. This was totally acceptable. Maybe it depends on the particular person's financial standing.

 

[Katrine]

I don't see how it could only benefit a potential heir. After all, this would come from the donor's funds when they die ( assuming they have funds left), which would be taken before any inheritance. Surely a pre-paid plan made in advance, could potentially save money.

It would only save money after the person dies, in that the funeral costs will probably be cheaper than the going rate at that future time. The person concerned does not benefit as they are by that time dead. While they are alive they might benefit from that money being spent instead on their care, their clothes, entertainment or luxuries. However, since funeral expenses are an eventual necessity, it seems to be the view of officialdom that it is reasonable to allow the person to pay for their own funeral while they have the funds, rather than leaving this for relatives, or the state, to pay for.

We chose to buy a funeral plan not so much to save money but more to have arrangements in place. My brothers and I live a long way from my mother's home, and none of us is her executor. Things could get complicated and painful if left to chance.

Other people buy a plan to get things sorted financially, rather than having to pay a large amount later from the person's residual estate. When the person is borderline for LA funding that seems understandable. There will be little enough left in the end. It isn't just about inheritance, it's about dignity. The older generation pride themselves on being able to afford a decent funeral, and still have something to leave to their family, after a lifetime's hard work.

 

[Joybelles]

I have email the OPG for their thoughts and clarification on this matter. If I receive a reply I will post it here!

Thanks or all your mixed comments

 

[Sharpie]

Following this as I'm in a similar position. My father is about to be from hospital to CH and I'd like to purchase a plan for him out of his money first.

I'm seeing a solicitor on Monday.

 

[alyfen]

Following this as I'm in a similar position. My father is about to be from hospital to CH and I'd like to purchase a plan for him out of his money first.

I'm seeing a solicitor on Monday.

I'm interested in any updates on this. I have POA and have just bought a funeral plan for Mum who is NHS funded. I didn't ask OPG so hoping it's ok.

 

[Joybelles]

Reply from OPG

Today I have received this reply from the OPG:

Dear ********
Thank you for your email dated 08/11/2016, the contents of which have been noted.

Yes it would be acceptable to purchase a prepaid Funeral Plan, as it would be deemed as acting in the donors best interests.


Kind regards


So now to do some research into funeral plans!