The One Thing We Should All Prepare For

It's not the cheeriest of topics, but it is of the few certainties in life - and planning for it now can make all the difference.

Have you thought about how your funeral is going to be paid for?

Understandably, it's a subject most people would rather not contemplate. The end can seem a very long way off, particularly if you're young and healthy.

And when someone dies, the last thing you want to be dealing with is the financial nitty-gritty.

But life can throw nasty surprises at all of us, and if we fail to plan properly now, it's our loved ones who are faced with financial hardship - as well as heartbreak - when the time comes.

Here at The Fool, several of my colleagues have written excellent articles on subjects related to this, including life insurance, the importance of making a will, and how to deal with inheritance tax.

So I'm going to take a look at the funeral itself: how to plan ahead, some affordable options that are available, and ways to make things a bit easier for the people left behind.

Pre-plan your own funeral

Recent research by AXA indicates that the total cost of an individual dying in the UK is now typically just over £5,900.

This includes payments for burial or cremation, administration of estate, funeral flowers, death notices, a wake, and a memorial or headstone.

So how do you ensure your family and friends don't end up shouldering these costs?

It may seem morbid, but one option is to pre-plan your own funeral and set the money aside during your lifetime.

If you've got specific burial wishes that are likely to prove expensive, this will also mean you don't feel guilty about your loved ones spending a lot of money to honour them.

And if you're part of a couple, keeping this cash in a joint savings account may be a good choice, as the surviving partner can then access it quickly and without unnecessary trauma.

The If I Should Die website seems a supportive and understanding place to start.

Organise your paperwork

It sounds very mundane, but getting all your practical affairs in order can make a huge financial difference to those you leave behind.

         Make sure someone you trust knows where your will is. This applies to the original (for legal purposes) as well as a copy (for planning what needs to be done).

         Keep a clear list of all your personal financial data (in a very secure place, of course!). By this I mean bank account and credit card information, life insurance and ISA documents, phone and energy provider details, and so on.

Again, make sure someone you trust - like a partner - knows where this is, so that if the worst happens, they can get their hands on essential funds.

         And if you choose to keep your valuables hidden away at home, leave a note with your will saying exactly where they are.

Dealing with the professionals

If you have to plan someone else's funeral, there are several ways you can keep finances under control when dealing with the professionals involved.

         If you feel able, try and compare prices between firms of undertakers, as they do vary widely. Visiting the firms personally also helps you get an idea of how the deceased will be received and treated.

         Try to discuss possible financial arrangements before you arrive at the undertakers, and take someone with you. That way, you're less likely to feel pressurised into spending money on things you don't want.

         Undertakers don't always advertise their full range of services. If you want the cheapest, simplest option possible, say so. They may provide this service, but not shout about it.

Make your wishes clear

If you want a simple, affordable funeral, tell people, or put it clearly down in writing. Otherwise, your loved ones will probably feel guilty and spend lots of money you wouldn't have wanted them to.

Obviously this is a very personal decision, but thinking about it now could save your family thousands in the long run. For example, a quiet trip to the local pub is far cheaper than the catering at a large wake.

Some affordable options

There's no nice way to put this, but you need to consider how you want your body to be treated.

There's the choice between cremation and burial (cremation is slightly cheaper), but there are also other affordable options that may, or may not, appeal to you. Here are two of them.

Donate your body to medical research: This means your body will be used for training and experimentation by the medical profession. The cost to you is minimal, and your remains are cremated within three years of the date of death.

Obviously, this isn't one for everyone. Not all bodies are medically suitable, and relatives sometimes feel it's more difficult to move on if their loved one's remains are dealt with in this way.

For more information, visit the Human Tissue Authority or Department of Health websites.

Green funerals: An increasing number of Britons are choosing environmentally-friendly funerals, partly due to affordability.

The coffins are made from easily biodegradable materials - like cardboard and bamboo - which are usually also cheaper than hardwood equivalents.

Because many such funerals take place on nature conservation sites, expensive headstones and large memorials aren't usually an option either.

And if they feel they want to, friends and relatives can often arrange the burial themselves, even as far as digging the hole.

For more information, have a look at charitable project The Natural Death Centre. Or here's an example of a funeral firm that runs both green and `traditional' services.

After the event

After a relative's funeral has taken place, you may be entitled to claim back some of the costs if you're on benefits or a low income. Here's a leaflet from JobCentre Plus telling you more about it.

And as a widow or widower, it's also worth looking at whether any pension or council tax arrangements need to be updated.

For example, if you're now living alone, you're eligible for a 25% single occupancy Council Tax discount.

I know this isn't the cheeriest of reading - and if a loved one has died, money is probably the last thing on your mind.

In the long run, however, I hope you find it useful. Hopefully, information of this sort should make a hugely difficult time that tiny bit easier to deal with.

More: What To Do Before You Die