Funeral expenses: what they are and how to manage them

What are funeral expenses? At Áltima we will tell you everything you need to know so that you can manage these costs and keep the financial Funeral expenses: what they are and how to manage them burden to a minimum.

What are funeral expenses?

When we talk about funeral expenses, we are referring to the costs associated with the funeral services before the burial or cremation of a loved one.

These costs can vary depending on a number of factors, such as cultural traditions, family preferences, geographical location or the funeral company chosen.

These funeral expenses refer to the acts that take place prior to burial or cremation.

What are the funeral expenses included in a funeral?

Generally, funeral expenses include the costs of funeral services, ancillary services and administration. This means that the list of expenses can be very extensive, depending on the services chosen.

Basic funeral services

There are a number of basic services that are compulsory after the death of a loved one. What are these basic funeral costs? These include the preparation of the body, the organisation of the wake and the funeral ceremony.

The type of services vary according to family preferences, traditions and religious beliefs. The funeral can be religious or civil, private or on a larger scale, for example. It depends on the family's choice and the last wishes of the deceased.

Coffin costs and cremation options

Other unavoidable funeral costs are those related to the coffin or urn. Here, the material used, its design and other features or details mean that the price can vary considerably.

In the same way, the choice between a burial or cremation will also have an impact on the cost involved. For example: in the case of burial, it is necessary to pay for a cemetery concession, in addition to other expenses, such as the gravestone; in the case of cremation, the urn or the cost of the cremation process are unavoidable expenses.

Transport and logistics costs

The transfer of the deceased to the funeral home or from the funeral home to the cemetery, for example, is an additional cost. This cost will be higher if it is necessary to transfer the deceased to a different city, province or autonomous community, and even higher if the deceased is to be repatriated to another country.

All these logistical and transport costs are funeral expenses and, since the law requires them to be carried out by an authorised funeral company, they are unavoidable.

Administrative procedure costs

Upon the death of a loved one, certain administrative procedures and arrangements have to be carried out which, in many cases, are related to obtaining certificates and permits. This involves the payment of fees that are also included as funeral expenses.

Which family member must cover the funeral expenses?

It is the direct family of the deceased person who must pay the funeral costs. In general, this means the surviving spouse or common-law partner, the children or, as a last resort, the next of kin.

According to Spanish law, it is the relatives who are obliged to pay the funeral expenses, whether or not there are any inherited assets.

It may be the case that the deceased person has made a funeral plan during their lifetime and has these costs covered. However, if this is not the case, it is important to find out how much a funeral costs without insurance.

If the deceased had an insurance policy, the insurance company will be responsible for the basic cost of the funeral expenses, although this will depend on the policy taken out.

How can funeral expenses be settled?

There are different ways of settling funeral expenses. One way is to pay in cash, but it is also possible to pay for a funeral in instalments.

The best way to pay for these expenses in a gradual way is through a plan, which in most cases is linked to a funeral insurance policy. The person who has the plan can pay these costs during their lifetime so that their relatives do not have to pay them when they are no longer alive.

Many families ask themselves whether these funeral costs can be tax deducted or whether there is a funeral allowance. In principle, these expenses are not income tax deductible, but they can be deducted in the personal income tax (IRPF) after the inheritance, as stated in the regulations on Inheritance and Gift Tax.

Advice on how to reduce funeral expenses

Many families take out life insurance to cover funeral expenses and thus ease the financial burden on their family. But when no provision is made, many family members have to look for ways to cut costs when a loved one dies. How can this be done?

• Compare prices at different funeral companies and choose the one that best suits your budget.

• Choose a company where you can personalise the funeral services so that you can include only those services you require.

• Make sure that the funeral company you choose offers the most comprehensive basic services.

Either way, having a plan in place is always the best option, as it not only allows you to choose the funeral services you want, but it also finances the payment for them so that they don't have to find a large sum of money later on. You will be able to ease the burden on your relatives and choose the type of funeral according to your own preferences.