Updated 23 October 2026
Wills - Potential Problem #49: Overlooking Funeral Costs
Planning for funeral expenses helps your family make decisions without having to guess what you wanted or how to pay. In New South Wales, a carefully prepared will can identify your executor, record your funeral wishes and clarify how reasonable expenses should be met. It should sit alongside a practical funding plan that your family can find when needed.
A will does not make money immediately available. Equally, leaving out a funeral clause does not automatically mean relatives must bear the final expense themselves. Reasonable funeral expenses can generally be paid or reimbursed from available estate funds. The problems often arise when nobody knows the budget, payment arrangements or who should take responsibility.
What a will can clarify before a funeral is needed
Making a will creates an opportunity to discuss burial or cremation, religious or cultural preferences, a preferred location and the scale of the service. It also allows you to appoint an executor and a substitute if your first choice cannot act. These conversations can uncover disagreements while you are still able to explain your priorities.
Ask your solicitor to address the intended treatment of funeral expenses and any unusual request. For example, a wish for overseas repatriation needs a realistic plan for transport and approvals. A request for a family vault raises different financial questions from a single burial. Clear drafting helps distinguish your personal wishes from benefits intended for other relatives.
Record where any prepaid contract, cemetery paperwork or insurance information is kept. A separate funeral wishes document can provide practical details without overcrowding the will. Keep the documents consistent and make sure your executor knows which version reflects your current preferences.
Are funeral instructions in a will legally binding
Ordinary funeral directions in a NSW will are generally not legally binding. The executor should try to respect them, but practicality and available resources matter. A written direction against cremation is an important exception: the deceased must not be cremated contrary to that direction. Legal Aid NSW explains the distinction.
Clear wishes still have considerable practical value. They reduce uncertainty about what matters most to you and give your family a starting point for discussions. Include a workable alternative where appropriate, especially if your preferred location or service may be unavailable. Do not assume that simply writing an expensive request makes every associated cost recoverable from the estate.
How much should you allow for a funeral
ASIC Moneysmart's funeral funding guidance, updated on 3 September 2026, states that funerals can cost from $8,000 to around $20,000, depending on the type chosen. This is a broad Australian guide, not a fixed NSW price or a quote for your arrangements. Obtain current, itemised quotes for the services you actually want.
Check transport, the coffin, burial or cremation charges, a cemetery place, clergy or celebrant fees and any gathering afterwards. Ask whether the quoted total includes every necessary service and any later memorial. Cultural requirements and interstate or overseas transport can change the budget considerably.
NSW funeral directors must provide an itemised quote before an agreement is entered into. Compare inclusions, exclusions, payment dates and cancellation conditions. A low advertised package may leave out items your family considers essential. Discuss optional extras before committing rather than discovering them on the final invoice.
Who is responsible for paying the funeral bill
The person entering into the funeral contract is generally responsible for paying the funeral director. Read the contract carefully before signing, even if you expect the estate to reimburse you. Being a beneficiary does not guarantee that every expense you authorise will be accepted as an estate expense.
Keep the itemised invoice, receipt and evidence of any agreement with the executor. If the estate has substantial debts or uncertain resources, seek advice before making a large commitment. Reasonable expenditure, available assets and the applicable rules for administering debts all matter. Do not assume that a valuable house means cash is immediately available.
Can funeral expenses be paid before probate
Sometimes they can. Banks may release funds from the deceased's account for funeral expenses before probate is granted. Contact the bank's deceased estates team and ask what documents and payment arrangements it requires. This is a specific process, not permission to withdraw funds using the deceased's card or online banking credentials.
For example, Commonwealth Bank's deceased estate guidance provides for payment or reimbursement of immediate funeral expenses. It requires identification and a tax invoice for an unpaid expense or a tax receipt for one already paid. Requirements differ between institutions, and the account must contain sufficient available funds.
Choose a funding arrangement your family understands
Savings: Setting aside money can help, but tell your executor where it is held and investigate how it can be accessed after death. A note saying that money exists is less useful than clear account and contact details stored securely with your estate information.
Prepaid funerals: These involve paying in advance for agreed services. Read the contract to identify exclusions, transfer arrangements and what happens if the provider changes. NSW prepaid funeral arrangements have specific protections, including requirements concerning registered funeral funds. Keep the contract accessible so your family does not unknowingly purchase the same services again.
Funeral bonds: These are investments intended to fund funeral expenses. They differ from a contract fixing particular services. Check the product disclosure statement, fees and arrangements for releasing the money after death.
Funeral insurance: This provides a benefit under an insurance policy rather than building ordinary savings. Moneysmart warns that premiums can exceed the eventual benefit and that cancelling cover may mean losing premiums already paid. Check exclusions and affordability before choosing a policy.
Superannuation and life insurance also need careful coordination. Ask who receives the benefit and how long a claim may take. A future payment should not be treated as money that will necessarily be available when the funeral director requires payment.
A real NSW case about excessive burial expenditure
In Angius v Salier (2019), a widower sought reimbursement from his wife's estate for funeral expenses and a twelve-person burial vault. The vault cost $385,000. Although reimbursement of the funeral director's invoice was accepted, the administrator disputed charging the entire vault to the estate.
The Supreme Court allowed only one-twelfth of the vault's cost, $32,083.33, as part of the funeral and burial reimbursement claim. Other family members could benefit from the remaining spaces. The Court also noted the absence of evidence about the deceased's burial wishes or consultation with the children.
These were historical expenses, not current market prices. The case shows why families should clarify plans and funding before committing to substantial expenditure. A relative's preference does not automatically make the whole expense recoverable from the estate.
What if the family cannot afford the funeral
Check existing arrangements before taking on debt. Eligible families may receive bereavement assistance, veterans' benefits or help through an association. Where neither the estate nor relatives or friends can meet the expense, a basic state-arranged funeral may be available. The NSW Government outlines payment options; eligibility and available assistance depend on the circumstances.
Five steps to make your funeral plan usable
1. Prepare or review your will. Confirm your executor, substitute executor and funeral preferences.
2. Set a realistic budget. Obtain quotes and identify which wishes are priorities and which are optional.
3. Confirm the funding. Check savings, prepaid arrangements or benefits and consider any payment delay.
4. Tell the people who will act. Give your executor and a trusted family member access to your wishes and provider details before they need them.
5. Review after changes. Revisit the plan when your finances, relationships, location or preferences change.
CM Lawyers can help prepare or review a will that explains your wishes and fits your broader estate plan. Explore our wills and estates resources or contact our Marrickville team to discuss funeral planning alongside your executor appointments and estate arrangements.
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