As someone’s next of kin, do you have the right to make their arrangements? Or is it their executor’s responsibility to handle everything about their estate, including their funeral?
In this article, we’ll cover funeral decision-making, who takes care of funeral costs in Canada, how the government can help you pay for a funeral, and more.
Understanding Funeral Responsibilities
In Canada, funeral planning is usually handled by the deceased's next-of-kin or the executor named in their will.
Who Typically Plans a Funeral?
If the deceased has named an executor in their will and has documented their funeral and burial wishes, the executor assumes responsibility for the funeral and acts according to those documented wishes.
If there are no documented wishes, it is still the executor’s responsibility to plan and facilitate the funeral according to what may have been the deceased’s wishes, considering the deceased’s religious beliefs, verbal or written wishes expressed outside of the will, or communication with their next of kin.
Does the Next Of Kin Plan the Funeral?
Generally, if someone passes away without leaving explicit instructions about funeral and burial wishes in their will, or leaves no will at all (having passed away intestate), their next of kin has the legal authority to make decisions regarding the disposition of their body and their funeral arrangements.
Funeral planning without a will can be difficult, especially when loved ones must make decisions while also grieving. That’s why it’s so important to create an end-of-life plan and document your wishes, so your loved ones can grieve without worry.
Who is the primary decision-maker among next of kin? The order of next-of-kin is usually:
- Spouse or common-law partner
- Adult children
- Parents
- Adult siblings
- Other relatives
You can check your local legislation on next of kin by looking up your province’s Succession Act. Or, if you’re in Quebec, check the Civil Code of Quebec.
In the absence of a will, executor, and next of kin, the provincial government or a court-appointed administrator will have the legal authority to manage the funeral.
Financial Aspects of Funerals
The responsibility for paying funeral costs typically falls on the deceased's estate or their next of kin. Here's a breakdown of common expenses and who is typically responsible.
Who Pays for a Funeral?
The executor of the deceased’s estate is responsible for covering funeral and burial costs with assets from the estate. However, if the deceased has a pre-paid funeral plan, funeral insurance, or life insurance policy specifically for funeral expenses, those funds are used first.
The executor can also pay for the funeral with the Canada Pension Plan (CPP) death benefit.
Can funerals be paid from a deceased person’s bank account?
If the deceased had no funeral insurance, life insurance for funeral expenses, or pre-paid funeral plans, and the CPP death benefit does not cover all costs, the executor must use estate assets, such as cash from bank accounts, to cover them.
Note: Some banks require an executor to have a grant of probate before they can hand over management of a person’s accounts.
If the deceased’s assets cannot cover the costs, they are typically covered by the deceased's next of kin.
What is the $2,500 funeral benefit?
The Canada Pension Plan (CPP) death benefit is sometimes referred to as the $2,500 funeral benefit.
As long as the deceased contributed to the Canada Pension Plan (CPP) for at least three years, their executor can apply for a CPP death benefit within 60 days of their date of death. They will receive a one-time payment of $2,500 to help with funeral costs.
Leftover funds can also be added as assets to the estate.
Learn more about who reports the CPP Death Benefit on their taxes →
Types of funeral costs
- Professional Services (Transportation, Documentation, etc.): This covers the funeral home's basic services, such as transporting the deceased, obtaining death certificates and permits, and administrative tasks.
- Embalming or cremation: Embalming temporarily preserves the body for viewing, while cremation reduces the body to ashes through heat and evaporation.
- Casket or urn: The cost of the casket or urn, which is the container that holds the deceased's body or cremated remains, respectively.
- Viewing and visitation services: These are the costs for the funeral home's staff and facilities used for visitation or viewing of the deceased prior to the funeral service.
- Funeral service: This is the fee for the funeral home's staff, equipment and facilities to conduct the actual funeral ceremony.
- Burial interment fees: These are the fees the cemetery charges for the physical labour and equipment needed to open and close the grave for casket or urn burial.
- Grave Plot: The cost to purchase a plot of land or section of a columbarium, where cremated remains are stored.
- Headstone/Marker: The fee to purchase and engrave the headstone or grave marker installed at the burial plot.
Average Funeral Costs in Different Provinces
According to data from InMemory Research, Dundas Life, and MyChoice, the average standard funeral costs in each province in Canada are as follows:
No data for average funeral costs in the Northwest Territories, Nunavut, or Yukon.
The costs of funerals can vary significantly based on the type of service, burial or cremation, and additional services requested. Value and scarcity of burial land also play a role, as is the case in high-density places like Toronto.
By pre-planning and considering various options like direct cremation, you can help manage expenses.
Essential Steps in Planning a Funeral
Create a funeral plan easily with our step-by-step funeral checklist. Download now →
Who Decides Funeral Attendees and Arrangements?
If the deceased left written instructions about their funeral wishes and who should or shouldn't attend their funeral, the funeral attendance decision is already documented, and those wishes should be considered.
These documented wishes take precedence over conflicting wishes from surviving family members or friends.
Anything that is not covered by the deceased’s will or statement of wishes is up to the executor’s discretion.
- Former spouses, estranged family members, and those who have expressed interest in paying their respects to the deceased at the funeral may or may not be included depending on their relationship with the deceased
- Children from previous relationships are typically included
Handling Funerals Without Funds
The CPP death benefit ensures that every CPP contributor can afford a respectable funeral and burial.
However, if the contributor was not a CPP contributor, and their next of kin cannot help fund a larger funeral and burial service, here are some budget-friendly funeral options the executor could do to financially support the funeral:
- Choose a direct cremation or burial: a direct cremation involves cremating the body shortly after death without a service, while a direct funeral has the body burial soon after death in a simple container. Direct cremations range from $600-$3,000 depending on the provider and region, while direct burials start around $1,000.
- Donate the body: Donating the body to science allows a credible institution to use it for education or research. Once their work is completed, they will also take care of most or all cremation costs. The cremated remains are then returned to the family.
- Apply for government assistance: If the deceased is eligible, the executor or next of kin may want to apply for government assistance, social assistance programs, or veterans benefits to cover funeral costs.
- Get help from the community: If the deceased or their loved ones belong to community churches, charities, or cultural groups, they may be able to seek help from their community. The executor or next of kin could also try to raise money through a fundraising platform like GoFundMe.
The importance of planning ahead
Tomorrow is never guaranteed, which is why it’s so important to make an estate plan and document your funeral and burial wishes as soon as possible.
When you make a Willful will, you do more than just save thousands of dollars in lawyer fees. You also:
- Name an executor to manage your estate and arrange your funeral
- Easily choose between different funeral or burial options and document your wishes
- Appoint a guardian to look after your children or pets
- Leave legacy gifts to loved ones or charities
Now is the time to pre-plan and give yourself and your loved ones peace of mind.
