The Cost of Dying Keeps Rising: What You Can Do About It
Nobody enjoys thinking about the financial side of a death in the family. But the bills arrive whether we plan for them or not, and they are getting bigger. Funeral prices are climbing, court fees are going up and more estates are being drawn into Inheritance Tax every year.
The good news is that a little planning now can take much of the strain off the people you leave behind. Here we look at where the costs fall, what has changed recently and the practical steps you can take.
The funeral
According to the SunLife Cost of Dying Report 2026, a simple attended funeral in Scotland now costs an average of £3,655, a little below the UK average of £3,828. That covers the essentials: the funeral director, a coffin, a hearse, the cremation or burial fee and someone to lead the service. Add flowers, a wake, catering and a memorial, and the typical UK total rises to £5,140.
Prices are rising faster than they have for some time. The cost of a traditional attended funeral went up by 5.3% over the year, the sharpest annual increase since 2016. And while around 70% of people make some provision for their funeral, only 42% set aside enough to cover the full cost, leaving family members to make up the difference.
A few practical points are worth knowing:
Reasonable funeral costs are normally paid from the estate of the person who has died.
Many banks will settle a funeral director's invoice directly from the deceased's account, even before Confirmation has been granted.
Funeral directors must publish a standardised price list, so comparing quotes is much easier than it used to be.
If you receive certain benefits and are responsible for a funeral, you may be able to claim a Funeral Support Payment from Social Security Scotland.
Winding up the estate
Before an executor can collect in bank accounts, investments or a house, they will usually need Confirmation from the Sheriff Court. This is the Scottish equivalent of probate, and we explain the wider process in our guide to what you need to do after a death.
The court fees themselves are fairly modest. Since April 2026 there has been no fee for an estate worth £50,000 or less, a fee of £351 for an estate worth up to £250,000 and £705 above that. Those fees are already set to rise again in April 2027, to £362 and £726. Smaller estates of £36,000 or less can use a simplified procedure, with help from the sheriff clerk.
The larger cost is usually the time involved. Administering an executry means finding and valuing everything the person owned, identifying debts, dealing with HMRC, collecting in the assets and paying out the right amounts to the right people. How long that takes depends far more on how organised someone's affairs were than on the size of their estate. Our Price Transparency Guide gives an indication of our fees, and we will always provide an estimate before any work begins.
Where there is no Will, costs go up. Someone must petition the court to be appointed as executor, and they will normally need a bond of caution, an insurance-backed guarantee that carries its own premium. The process takes longer, and the estate passes under the rules of intestacy rather than according to the wishes of the person who has died. We looked at this in more detail in What if there isn't a Will?
Inheritance Tax is no longer just for the wealthy
Inheritance Tax is a UK tax and applies in Scotland just as it does elsewhere. Everyone has a nil rate band of £325,000. On top of that, there is a residence nil rate band of up to £175,000 where your home passes to children or grandchildren, although this tapers away for estates worth more than £2 million. Unused allowances can usually pass between spouses and civil partners, so a married couple may be able to leave up to £1 million free of tax. Above the available allowances, tax is normally charged at 40%.
The nil rate band has been fixed at £325,000 since 2009, and both allowances are now frozen until April 2031. As property values rise, more ordinary families find themselves over the threshold. HMRC collected a record £8.5 billion in Inheritance Tax in 2025/26.
Two recent changes are worth highlighting:
Business and agricultural property. Since 6 April 2026, full relief on qualifying business and agricultural property has been limited to the first £2.5 million per person, with 50% relief above that. Any unused allowance can pass to a surviving spouse or civil partner. For farming families and family businesses across Argyll, this is well worth reviewing. If you hold shares in a family company, our earlier article on dealing with shares in a private limited company following a death may also be useful.
Pensions. From 6 April 2027, most unused pension funds and death benefits will count as part of your estate for Inheritance Tax for the first time. If you have a sizeable pension that you never expected to spend in full, this could change your position considerably.
There is also a timing problem that catches many executors out. In Scotland, at least some of the Inheritance Tax due usually has to be paid before Confirmation can be granted, yet the money in the deceased's accounts is normally frozen until Confirmation is in hand. HMRC's Direct Payment Scheme allows banks and building societies to pay the tax straight from the deceased's accounts, and tax on property can often be paid in instalments. However, interest is charged on unpaid tax from the end of the sixth month after the month in which the person died.
What can you do about it?
Much of this strain can be reduced with some forethought.
Make a Will, or update the one you have. A clear, current Will avoids the cost and delay of intestacy and lets you choose executors you trust. If your circumstances have changed, our article on how to change your Will explains your options.
Decide how your funeral will be paid for, and share your wishes. Savings set aside for the purpose, life cover or a pre-paid funeral plan all spare your family from finding the money at short notice. SunLife's research found that families who knew at least some of their loved one's wishes saved an average of £335.
Plan for Inheritance Tax early. Lifetime gifts, leaving at least 10% of your net estate to charity (which reduces the rate on the rest to 36%) and making sure the residence nil rate band is available can all make a real difference. Life insurance written in trust sits outside your estate and can provide funds to meet a tax bill without waiting for Confirmation. Our article Tax, Care Planning and Gifting: What to Think About Before It Is Too Late covers gifting in more detail.
Review your pensions before April 2027. Check that your nomination forms are up to date and take advice on how your pension fits into your wider planning.
Keep your paperwork in order. A simple list of your bank accounts, policies, pensions and where your important documents are kept will save your executors time and your estate money.
How Stewart & Bennett can help
Our Wills & Executries team helps clients across Dunoon, Cowal and the wider Argyll area to plan ahead, from making a Will and reviewing Inheritance Tax exposure to putting a Power of Attorney in place. When the time comes, we can guide executors through every stage of the executry and, because we also run our own estate agency, we can help with the sale of a family home if needed.
To talk things through, call our Legal Services team on 01369 702885 or get in touch with us online.
This article is provided for general information only and does not constitute legal advice. The information is accurate to the best of our knowledge at the date of publication, but laws and guidance change over time. If you need advice about your own circumstances, please contact us.