(7)Liability for Funeral Expenses

technically chapter 6

What are the 2 goals in funeral service?

1: meet the death care related needs of the family
2: Ensure the economic continuance of the funeral home

What is GYM?

GET YOUR MONEY

What are some good things to know when it comes to getting a funeral covered?

-very few people care about payment after the services are over because their immediate needs are met
-you can gain insight into people’s finances without asking
-ask about budgets
-assure them of a wide variety of services and merchandise to accommodate their needs

Who/what can pay for the funeral bill?

-estate
-surviving spouse
-parent
-government

What should a prudent funeral director have a clear understanding of?

-Who’s taking on the bill
-Who the person is in relation to the decedent
-why they are financially takin on the obligation
-individual funeral home policies

What steps should a prudent funeral director take to ensure that you are paid for services rendered?

-Make families sign a copy of the statement of goods and services, with SSN in case of dispute or default
-Have copies of all financial agreements on records

What is the estate?

The real and personal property owned by the deceased at the time of death- also the primary obligor. Preferred claim. Anythiing and everything they owned at the time of death is considered estate.

Estate is the primary obligor of the funeral bill, meaning…

the estate is primarily responsible for the payment of the funeral bill and the funeral director may look to the estate for payment. Funeral bill is high on the priority list in terms of payment from the estate, especially in cases of insolvency.

Funeral bills are often considered a preferred claim, which means…

the claim is given priority, advantage or privilege.

What is an insolvent estate?

estate in a condition that does not have enough money to pay the debts of the deceased or the debts of the estate. Probate courts have priority lists in which money from the estate is prioritized to certain areas of the deceased’s debts. The funeral bill will be 2nd or 3rd on the priority list to be paid in this case.

According to ohio revised code section 2117.25, what is 2nd priority?

-part of funeral expenses, not exceeding 4k
-part of cemetery expense, not exceeding 3k

According to ohio revised code section 2117.25, what is 6th priority?

Part of funeral expenses, more than 4k but no more than 6k

According to ohio revised code section 2117.25, what is general debt?

any part of the funeral bill in excess of 6k

Expenses must be reasonable...what is reasonableness determined by?

-Size of the estate
-Station in life
-knowledge of the funeral director
-Right of creditors
-Religion
-Fraternal memberships
-Local and Contemporary customs

What was decided in succession of smith?

Funeral bill was $4,599 and the total estate was worth $26,500. probate ruled that while the funeral bill was borderline excessive, it was not out of proportion to the size of the estate.

What happens when someone dies intestate or without anything in their will about provision for payment?

The amount of the funeral bill that will be charged to the estate is limited based on what a probate court finds to be a reasonable amount

How does status in life affect probate?

If someone was of higher status or had ethical/religious customs that call for a more elaborate funeral, the court can allow for a higher funeral bill

How does the funeral director’s knowledge of an estate affect probate?

Court may run a funeral bill excessive if the FD contracts for a large funeral and the decedent had a small estate. This works vise versa.

What is the biggest disadvantage when it comes to relying on an estate to pay a funeral bill?

Time. Probate can take up to a year or more after the passing of the decedent. FH will not rely on the settling of an estate most often.

What can you suggest for a family with a decedent that has an estate that can pay the funeral but the probate will take a while?

Suggest someone in the family pay for the bill and have them place a claim against the estate for that cost. When the estate is settled, that family member can be reimbursed.

According to common law, the husband and father is responsible for the funeral expenses of..

Wife and dependent children, regardless if the wife leaves the estate or if the father/husband signs a funeral contract. He can also not be reimbursed from the decedent’s estate. This makes the father or husband the primary person responsible for the payment of a funeral bill with estate second.

If a child dies and the parents are divorced or separated, what affect does this have on the common law?

None. The father/ex husband is still responsible for funeral bill.

If a husband/father passes prior to a wife or child, what does common law state?

The wife or child has no duty to pay the funeral bill.

Who has contractual liability for the funeral bill?

-In some states, it is the person with the ROD who requests the funeral services- more common in states where the estate is primarily liable for the funeral expenses.
-Some states, it is not the perosn who requests the fuenral services.
-Third party, especially when the person with the ROD is not paying for the funeral- have third person sign contract and allow them to assume financial responsibility.

Why are joint and several contracts important when it comes to contractual liability?

In the case of third parties being involved and the person with ROD is not paying, the third party must sign and assume financial responsibility. Person with ROD must also give permission to move forward with selections.

Why shouldn’t you listen to the person paying the bill only?

People with NOK rights have the legal duty to arrange everything and ultimately become responsible for making arrangements in which they can afford. Ask questions if someone without NOK rights asks to pay the bill and make sure they understand they have no right to arrangements.

What is an executor/trix?

Person appointed by a testator to execute their will. If they are signing the funeral bill as the executor with the expectation to be reimbursed, they must sign as the executor, or they will be held personally responsible for paying the bill with little consideration of reimbursement.

Who is the administrator/trix?

Person appointed by the court to administer an estate

When might the state be held liable for the funeral contract and expenses?

funeral service ordered by a public official

When is someone deemed indigent?

when they have no money for the funeral expenses. State and local government may be responsible for some of those funds. In a bad economy, programs are often very limited.