Losing a loved one is brutal enough. You’re struggling to process and accept the loss on your own terms, and there’s no simple or straightforward path to get to that point. The burden of arranging a funeral can add even more stress – especially when you don’t have immediate access to your loved one’s assets to cover the costs.

Unfortunately, this is something that we see people going through all too often due to issues related to probate delays, frozen bank accounts, or a lack of prearranged funeral funds. Most people don’t realize how expensive funerals really are, and those unexpected costs can add up fast.

In this post, I’m going to cover the challenges of suddenly having to pay for your loved one’s funeral in greater detail, as well as what options are available to help you manage costs and ensure a dignified farewell – without unnecessary financial strain.

Ready or Not, You’re Paying for a Funeral – Why? And What Does That Look Like?

First, let’s look at the “why” here. I touched on this above, but when someone passes away, their financial accounts and assets are often temporarily inaccessible due to a variety of legal and administrative processes. What does “temporarily” mean? Depending on where the funds are held, it may take weeks or months for them to become available – time you can’t wait.

Let’s break that timeline down a bit further based on where the funds are located and the processes you may come into conflict with:

Probate Delays. These proceedings can be lengthy, particularly if the estate is complex or contested, leading to big delays in accessing necessary funds. On average, probate can take anywhere from six months to two years depending on the complexity of the estate.

Frozen Bank Accounts. Financial institutions may freeze individual bank accounts upon notification of death, preventing immediate withdrawals. Access to these funds typically requires proof of an executor or court approval, which can take several weeks to a few months.

Life Insurance Processing Time. Life insurance claims, while a potential source of relief, often require paperwork and verification, further prolonging access to funds. The processing time for life insurance payouts typically ranges from two weeks to three months, depending on the provider, policy details, and whether the death was under investigation.

What kinds of costs might you be expected to cover? It varies depending on your loved one’s wishes, but some of the things you may need to pay for include:

• Funeral home services
• Casket or urn purchases
• Transportation
• Burial or cremation fees
• Associated ceremony expenses
• Obituary publication
• Flowers
• Catering for a memorial service

All told, surviving family members may be left scrambling to deal with costs that can easily range from $7,000 to $12,000 – or even more.

Solutions for Managing Unexpected Funeral Expenses

Thankfully, there are some things you can do to mitigate out-of-pocket funeral costs. Let’s look at some options that are available if you find yourself in this awful situation.

Funeral Payment Plans

Many funeral homes offer financing options that let families pay for services in installments rather than everything upfront. While not a perfect solution to help you avoid out-of-pocket costs, this can help ease the immediate burden and provide flexibility as you’re waiting for estate settlements.

Life Insurance Assignment

If your loved one had a life insurance policy, some funeral homes and third-party companies will accept an “assignment.” Essentially, this means that they agree to receive payment directly from the insurance proceeds once the claim is processed.

Government and Nonprofit Assistance

Depending on eligibility, government programs such as Social Security’s $255 lump-sum death benefit or veterans’ burial benefits can provide some financial relief. Additionally, nonprofits and local agencies may offer aid for low-income families.

Accessing Joint Accounts

Joint accounts may provide some relief, but not everyone has access to such arrangements, leaving many families without immediate financial support.

Crowdfunding and Community Support

Online platforms like GoFundMe can help raise funds through friends, family, and the broader community. Religious organizations, charities, or local support groups may also provide financial assistance.

Credit Cards or Personal Loans

If you have no other way to get the money quickly, using a credit card or taking out a personal loan can be a temporary solution. While this option incurs interest, it can provide immediate funds to cover urgent expenses.

The Best Solution? Make a Plan in Advance

If you read a lot of those above ‘solutions’ and thought, “Really, that’s how I get money to pay for a funeral?” know that you’re not alone. When you need to pay for something fast, there aren’t a lot of great options available.

That’s why, if you want to avoid financial stress in the future, it is incredibly important to work out a plan ahead of time to make sure funeral costs are covered. Just a few of the possible options available to you include setting up Payable-on-Death (POD) Accounts, creating a pre-paid funeral plan, and setting up a designated savings account.

Again, those are just a few of the possible options. If you are unsure what the best method is for you, we’re here to help. We have worked with a lot of clients to set up funeral funding in one way or another, so we’re well aware of the possibilities and can walk you through your options.

While it’s never easy to prepare for the loss of a loved one, having a financial plan in place definitely helps to ease the burden on surviving family members when the time comes. By exploring these solutions, families can ensure a respectful farewell without financial hardship.