Planning a funeral can be an incredibly stressful and emotional time. On top of grieving for your loved one, you have to make many important decisions very quickly. One of those is how you will pay for the funeral expenses. The average cost of a funeral is around $7,000 to $10,000 in the US. This is a large and unexpected expense that many families struggle to pay.
If you find yourself unable to pay the funeral home bill after the services, it can lead to financial and legal issues Here is what you need to know about what happens if you don’t pay a funeral bill
The Funeral Home Will Pause Services
If you have signed a contract with a funeral home but cannot pay the balance owed, the funeral home will pause moving forward with any services This means they will not transport the body for burial or cremation, host memorial services, or complete any other preparations until payment is made
The funeral home has a right to do this since you entered a legal agreement promising payment They are not required to provide services without being compensated
The Body Will Be Held in Storage
Since the funeral services are on hold, the funeral home will need to store the body safely somewhere. Most funeral homes have refrigerated holding rooms, also called coolers, where bodies are kept.
The body of your loved one will be transferred to the cooler until payment is received or other arrangements are made. The funeral home may charge you a daily storage fee while the body is in their care. This fee can be $50-100 per day or more.
Storage fees add up quickly, making the total bill increase the longer it goes unpaid. The funeral home will expect these fees to be paid along with the original amount owed.
The Funeral Home Could Take Legal Action
If the funeral services have already occurred, such as a viewing or burial, and the bill is still unpaid, the funeral home may decide to take legal action. Since you signed a contract and have not upheld your end of the agreement, the funeral home can sue you to recoup the costs.
If they win a judgement against you in court, the funeral home can potentially garnish your wages, put liens on your assets, or force the sale of your property to cover the debt.
To avoid getting sued, you should communicate openly with the funeral home about your financial situation. See if setting up a payment plan is an option before they pursue legal routes.
The County Could Take Possession of the Body
If the bill remains unpaid after an extended time, such as several weeks or months, the funeral home may release the body to the county/local authorities. They have no obligation to store the body indefinitely without compensation.
Once the county has custody of the body, they will arrange for economical disposition, usually by cremation. The cremains may be interred in a common grave rather than returned to the family. No memorial service would be held.
This is essentially a pauper’s burial handled by the local government. To avoid this, make every effort to find financial assistance or pay the funeral home even a portion of what you owe them.
Options for Paying Funeral Costs
Here are some options to consider if you do not have the funds to pay the funeral bill:
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Fundraising: Create an online fundraiser asking friends/family for help or hold fundraising events. A little bit from each person adds up.
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Life Insurance: Check if your loved one had any small policies, even through work or a credit card. Payouts can be used toward funeral costs.
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Government Assistance: Social Security offers a $255 death benefit you may qualify for. Veterans are eligible for funeral expense aid. Medicaid may cover costs for qualifying low-income families.
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Family Help: Ask relatives to each contribute what they can afford, even small amounts, to cover the bill. Most will want to help.
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Religious Communities: Many churches, synagogues, mosques, etc. will provide charitable assistance to grieving members.
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Payment Plan: Ask the funeral home if you can set up installments instead of paying the entire balance at once. Make sure the terms are favorable.
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Funeral Loans: Third-party lenders offer funeral-specific loans, often with deferred interest periods. These help cover immediate costs but charge very high interest rates, so compare carefully.
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Cremation: Opting for cremation instead of burial can instantly reduce the funeral costs by several thousand dollars if you haven’t already had services.
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Negotiate Costs: Talk to the funeral director about lowering floral arrangements, casket options, service lengths, etc. to cut costs, if you haven’t already held the funeral.
If at all possible, avoid letting the situation deteriorate to the point where the county takes control of the body or the funeral home sues you. Work with them on a solution, get help from family, or use other resources to take care of your bill in a timely manner.
Options for funding a funeral
- Ask your loved one’s family and friends to help chip in.
- Their religious community may be generous, or consider setting up a GoFundMe.
- The funeral home may be willing to offer a payment plan, or to change the arrangements to reduce costs.
- Consider getting a funeral loan. These often have favorable terms, but high interest rates.
When someone close to you passes away, there are many financial responsibilities that suddenly must be handled on their behalf. Perhaps your loved one had an insurance policy or a prepaid plan set up to cover the costs of things like their funeral and burial. Otherwise, all of these immediate expenses will have to be paid out from their estate.
If you find yourself in the position of having to pay for a funeral for your loved one, you might not have the time to come up with a financial plan beforehand. You may assume that the estate will cover the costs of the funeral, but, in the urgency to plan it, you didn’t have time to check the total value of the estate’s assets. So you sign the funeral home’s bill, expecting that it would be paid for, and only later find out that the estate has no assets. Now what do you do?
First of all, know that this is not something anyone can blame you for. Dealing with the death of a loved one is an incredibly difficult and emotionally overwhelming thing, and all the bureaucratic processes that follow can be exhausting and confusing. In such situations, things don’t always run smoothly, especially in financial areas. It’s totally understandable—and you will be able to work it out.
If you signed paperwork with the funeral home, you are financially responsible for the funeral. The average funeral, including all related expenses, will cost between $6,000 and $10,000, with the average being around $7,000. This is a large financial burden to shoulder unexpectedly, but you do have options.
First of all, you may be able to speak with the funeral director to see if you can alter the preparations for the service to lower the cost. Many funeral homes will work with you to get the cost down as much as they can, while still offering a simple but elegant service.
Note that cremation is much less costly than a burial, and can lower the total price by several thousand dollars, as you will not have to factor in the purchasing of a casket or burial plot. If cremation is a possibility for you, your family, and your loved one, consider asking the funeral director about changing to this option.
A personal loan for the funeral
If you have a good credit score, you might consider taking out a personal loan to finance the funeral costs. Many traditional lenders will not usually loan money for a funeral, but there are institutions that offer or even specialize in funeral loans. Ask your funeral home if they have a funeral lender that they work with. These loans will often have favorable terms like no interest for several months or no-penalty early repayment, but like most personal loans, the interest rate can be high.
Avoid taking out an advance on your credit card to pay for the funeral. This can leave you in even more debt and paying massive interest.
Help With Burial Expenses When the Deceased Doesn’t Have Insurance : Insurance Tips & Answers
FAQ
What happens if you refuse to pay for your parents funeral?
What happens to a body if no one can pay for a funeral?
Do people go into debt for funerals?
What happens if you don’t pay a funeral Bill?
Since most funeral homes require some form of payment upfront, not paying the funeral bill would prevent you from having services. This could mean that the funeral home refuses to do services for you, refuses your business, or suggests you go to a different firm.
What happens if a family can’t pay for a funeral?
If you’re unable to pay for a funeral, you’ll need to sign the body over to the coroner who will handle the disposition of the body. If a family can’t pay for a funeral or afford the disposition costs, their family member will likely be buried in an indigent cemetery — a cemetery for those who can’t afford to be buried elsewhere.
Who pays for a funeral service?
Legally, the person who signs the contract with the funeral home is legally obliged to pay the bill. It’s prudent to ensure that the executor or estate will reimburse you for the costs before signing for the funeral service.
Should you pay back a funeral home?
In any case, you should always pay back the funeral home for any services rendered that you agreed to pay for. Failing to pay back the funeral home can prevent you from securing services in the future, should you ever need them. It might also prevent you from doing business with other funeral homes in the area if the owners know each other.
Should I pay for a funeral home or cemetery?
By preparing the body at home and conducting the burial on your own land, there’s no need to pay for the services of a funeral home or cemetery. Finding your own meaningful way to say goodbye to a family member in your own space can be a healing process.
Who pays for a funeral if no person is appointed?
If no such person is appointed, it falls to the closest living relative to pay for the cost of the funeral. What does the law say? Legally, the person who signs the contract with the funeral home is legally obliged to pay the bill.