Who pays for a funeral, and where the money comes from

Funeral Quote is a guide to who pays for a funeral in Australia and where the money can come from, written and published by Dotto. Each rule on these pages is linked beside it to its source: a government, court, legal aid or Moneysmart page, or, for bank accounts, the banking industry’s own Banking Code of Practice. Where the states differ, each one is given in its own words, from its own page.

1Six places the money can come from

1. 1

   The estate

   In South Australia reasonable funeral expenses sit at the head of the estate’s bills, ahead of legal costs, tax and other obligations, and other debts, and keep that place even when the estate owes more than it holds. Who pays for a funeral sets out each state’s own words.

2. 2

   The bank account of the person who died

   A bank that has signed up to the Banking Code of Practice can pay a funeral bill from the account, or pay back the person who paid it, before probate is granted. The request must come from someone the bank accepts as the estate’s representative (the executor, a person entitled to administer the estate or, in limited cases, the next of kin), with the invoice or receipt. Paying from the bank account sums up the Code’s deceased estate rules.

3. 3

   Their super

   Moneysmart explains that family may be able to use part of a person’s super towards the funeral, once a death benefit claim has been lodged with the fund, which means the money can arrive after the bill is due. See Super and funeral costs.

4. 4

   A bond or plan they set up

   Some people cover their own funeral in advance, through a prepaid funeral, a funeral bond or funeral insurance, which is why Legal Aid NSW tells executors and next of kin to look for one. Funeral bonds explains how a bond pays out.

5. 5

   Green slip insurance, after a road death in NSW

   When a road crash in NSW causes a death, NSW’s compulsory third party (CTP) green slip insurance can pay for the funeral; the NSW Government says to lodge that claim within 3 months of the crash, or after that with a written explanation for the delay. This one is a NSW scheme; other states’ schemes are not covered here.

6. 6

   Your own super, for a dependant’s funeral

   The Australian Taxation Office can approve an early release of your own super to pay death, funeral or burial expenses for your dependant, as a last resort and with evidence such as a quote or invoice. Super and funeral costs has a worked example.

2When the estate is small

Not every estate goes to court. Legal Aid NSW explains that if no one holding the person’s assets, such as their bank, asks for a grant of probate or letters of administration, one usually isn’t needed. The figures differ from state to state, and Small estates without probate sets them side by side, each from its own state’s page.

3Your state’s own pages

Each public trustee, court and legal aid service below publishes its own guide to estates. These are the pages this site was checked against.