In 2023, the total cost of dying in the UK saw a significant increase, rising by 5% to a staggering £9,658, the highest figure recorded. This surge has been largely attributed to the rising professional fees, which went up by 6.6%. The expenses involved in death and funerals can be broken down into several categories, each contributing to the overall increase in costs.
When a person passes away in a hospital or care home, medical fees are incurred for end-of-life care and the medical certification required. Additionally, transporting the body from the place of death to a funeral home adds to the immediate costs, with prices ranging from $150 to $500 depending on the distance. In some cases, such as repatriation from Dubai, these costs can soar as high as $10,000.
Funeral services themselves come with a wide range of expenses. Funeral home fees, which cover body preparation, paperwork, and the arrangements for the funeral, can reach up to $4,000. Embalming and preparation may add another $500 to $1,000. The choice of coffin or casket also plays a role in the overall cost, with basic options starting at $300 and luxury versions exceeding $10,000. Cremation, typically costing between $1,500 and $3,000, is often less expensive than burial, which can cost up to $9,000.
Additional expenses further contribute to the rising costs. Memorial services and wakes can range from $1,000 to an almost unlimited amount, depending on the preferences of the family. A standard headstone costs around $1,500 to $4,000, but more elaborate monuments can easily surpass $10,000. Legal and administrative costs are another factor, with probate fees typically costing 2-5% of the estate’s value. There may also be inheritance tax, depending on the domicile of the deceased.
If death occurs away from home, repatriation costs add another financial burden. Domestic transportation costs between $1,000 and $3,000, while international repatriation can exceed $10,000. In addition to transport, further documentation, such as translations and legal paperwork, may add $1,500 to the total costs.
The global population is aging, which means more deaths and, subsequently, higher demand for funeral services. In 2023, there were approximately 58 million deaths worldwide. This number is projected to rise to around 62 million annually by 2033, and by 2038, it is expected to reach 65 million. In 25 years, by 2048, the number of deaths per year is forecasted to rise to 70 million. With inflation compounding these costs, the worldwide average for funeral expenses could increase to $25,000 or more, with annual rises of 5-7%.
Rising land prices are contributing significantly to the cost of burials, particularly in urban areas where burial space is limited. High-demand regions are seeing price surges of 20-40%. In major cities like New York, burial plots can range from $200,000 to $1 million, while in London, they exceed £12,500. Tokyo sees prices up to $18,000, Sydney ranges between $6,500 and $19,500, and in Paris, the cost exceeds $8,500. Building crematoriums is also becoming increasingly expensive. Land prices globally have surged by 20-40%, with plots that once cost $1 million now exceeding $1.5 million in cities like London and New York.
Construction expenses, including building new crematoriums, have risen by 10-30%, pushing the cost of materials up to $2 million. Equipment for these facilities can cost between $150,000 and $500,000, an increase of 15-25%. Regulatory requirements, including permits and inspections, add another 5-10% to project budgets, which can translate to an additional $20,000 to $100,000. Operational costs, including staffing, maintenance, and utilities, exceed $200,000 to $500,000 annually. Labour costs are also rising, as experienced embalmers retire and the limited number of embalming schools struggle to meet demand. This has led to a skills gap and an increase in wages for those entering the field.
Government and legal fees add to the financial burden as well. For example, in the UK, environmental regulations for sustainable coffins have increased prices by up to 20%. In Switzerland, municipal fees for burial plots, documentation, and maintenance add between $1,100 and $3,200. Greece’s regulations require exhumation and reburial after 3-5 years due to limited burial space, costing an additional $525 to $1,050. In Singapore, multiple permits for embalming and cremation add hundreds of dollars to funeral costs.
Looking to the future, funeral costs could rise by 30-50% over the next 10 years. In 15 years, a standard funeral could cost more than $25,000, and in 25 years, those costs could double or even triple to reach $50,000.
Planning ahead can help mitigate some of these expenses. If a person is deemed to have their main home and domicile outside the UK, they cannot be buried, cremated, or have their ashes kept in the UK. This indicates they never intended to leave the UK permanently and affects taxation. If deemed UK-domiciled, their estate will be subject to inheritance tax, and their domicile status may also affect capital gains tax, leading to further UK tax obligations. Understanding these tax implications is essential for effective end-of-life planning, and consulting a financial adviser can provide tailored solutions to manage these costs.
Setting up a dedicated savings fund, investing in funeral insurance to lock in current prices, pre-paying for funeral services, or using trusts can help ensure funds are available when needed and maximise tax benefits. Updating wills and trusts as part of estate planning can also help reduce costs for heirs, while long-term care insurance can protect against future medical expenses.
Taking these steps early can ease the financial strain on loved ones and ensure that final wishes are honoured without unnecessary financial burdens.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
