InfoSub - Who's Going to Pay?

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InfoSheet SubPage - Who 's Going to Pay the Funeral Bill?

Ocean Grove Memorial Home
118 Main Avenue, Ocean Grove, New Jersey 07756

Thomas J. Saragusa, Manager
N. J. License No. 4036

VOICE 732-775-0434 - - OGMHognj@aol.com

Who's Going to Pay the Funeral Bill?

This overview of possible sources of payments has been prepared to assist you in determining how immediate and long term funeral expenses will be paid.

POTENTIAL SOURCES OF FUNDS FOR THE PAYMENT OF FUNERAL EXPENSES:

The ESTATE as the ultimate payor of funeral expenses. Normally all funeral expenses are ultimately paid by the estate, if the estate is solvent.

A. The arranger of the funeral (usually the spouse, next-of-kin, beneficiary of the estate or the person who will be appointed as the executor) may personally pay the required expenses (either in full or partially) and subsequently be reimbursed in full by the estate. (Payment to the funeral home is, in fact, a loan from the arranger to the estate. This loan is payable to the arranger from the assets of the estate.)

The arranger may be asked to pay such things as:
a. Cemetery Expenses
b. Any items for which cash has been advanced by the funeral home
c. The funeral expenses (or a portion thereof)

The arranger may make that payment by means of:
a. Personal Check
b. Cash (for which a receipt will be provided)
c. The assignment of Insurance Benefits if he is the beneficiary of record.

The arranger may incur additional expenses for which he may be entitled to reimbursement from the assets of the estate. Those expenses may include:
a. Travel expenses incurred in getting to and from the place of the funeral and final disposition along with travel expenses incurred during the administration of the estate. b. Housing - hotel or motel expenses for the time of the funeral.
c. Personal clothing for the funeral.
d. Flowers.
e. Caterer's fees.
f. Other expenses necessitated by the death.

In addition to actually paying any of the above mentioned expenses, the arranger may be asked to sign a promissory note to the funeral home personally guaranteeing any unpaid portion of the funeral bill if it is not paid at the time payment was agreed upon.

B. The assets of the decedent may be used:

If the arranger of the funeral is either a co-owner of those assets (e.g. checking account) or If the arranger had been given powers of attorney and if the payment was made (dated) prior to the date of death of the decedent.

C. The attorney for the estate, the attorney for the beneficiary, the trust officer or any other fiduciary (representing the estate or the decedent) may pay any required amount from: 1) funds held in trust or: 2) other available accounts and subsequently be reimbursed by the executor/administrator from the assets of the estate.

D. The assets of the estate may be used to pay expenses once they are available to the executor/administrator. Not a source of immediate payments.

E. Non-Insurance Benefits, such as the Veteran's Administration payments or union funeral benefits. Not a source of immediate payments.

An INDIVIDUAL as the ultimate payor of funeral expenses.

If the Estate is not solvent, the arranger, personally, (as next-of-kin or friend of the decedent) is expected to pay the funeral bill. Sources of funds available to individuals may include:

Personal Funds (cash or a personal check)

Anticipated insurance proceeds assigned by the individual to the funeral home.

Survivors Benefits (normally not paid unless there is a survivor.)

Social Security - ($255.00 will be paid only to surviving spouse or surviving minor children)

Lodge or Fraternal Organization - (various)

New Jersey Exempt Fireman's Association - ($6,000.00+ is payable to the immediate family only)

Veteran's Administration Benefits often total to $450.00 for eligible deceased veterans

Cash Advance on a Credit Card or a Bank Loan.

Prepaid Funeral TRUST Account as the immediate payor.

If funds have been prepaid to the funeral home for the purpose of paying funeral expenses, they will become available to the funeral home upon proof of death and proof of services rendered.

If the funds available are not sufficient to pay the then-current expenses, it will be necessary that the estate (see above) or another individual (see above) assume the financial responsibility to pay any remaining funeral costs.

GOVERNMENTAL AGENCY as the ultimate payor of funeral expenses. Not a source of immediate payments.

A. If there is no estate and if the relatives and friends cannot afford or decline to accept the financial responsibility of final disposition and if the decedent had no funds, the Local Municipality where the decedent lived or died is ultimately responsible for final disposition of the decedent’s body.

If the body of the decedent is actually "unclaimed," the Local Municipality will assume the responsibility for the final disposition and will pay as little as they can in arranging for final disposition.

B. If the decedent had already made contact with the County Welfare Board (Division of
Social Services) and had no personal assets and had been accepted onto their General Welfare rolls, the County Welfare Board may pay:

Up to $460.00 for final disposition directly to the place of final disposition.

Up to $1970.00 to the funeral home for merchandise and services.

Additionally, anyone may contribute an additional amount of up to $1,570.00 toward the total expenses of the funeral. Other than the aforementioned amounts, no additional funds may be contributed or the Welfare Board will reduce its commitment (dollar for dollar). The maximum cost of a “welfare” funeral is limited to $4,000.00.

All “liquid” assets of the decedent (even if held by someone else) will be counted by the Welfare Board as assets to be used toward the payment of funeral expenses. Along with any pay- ment voluntarily made by the family or friends, the TOTAL of those countable assets must be paid to the funeral home prior to services by the funeral home.

If this source of payment is selected, governmental payment must be verbally authorized by a supervisor of the Division of Social Services before the funeral home will proceed with arrangements.

To our knowledge, no other governmental agency makes any payment for
funeral expenses.

FUNERAL INSURANCE as the ultimate payor.
Not a source of immediate payments.

Funeral Insurance has only recently been allowed in New Jersey. If the decedent had purchased Funeral Insurance, the funeral director will assist you in claiming those benefits.

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