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Question:

Will funeral payments from the Social Fund form part of the Estate?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

An estate of a person should be utilised in the following order:
1) Payment for funeral expenses
2) Debt clearance
3) Execution of bequests

After personally discussing the eligibility criteria, terms and conditions of the Funeral Payments from the Social Fund with the Department of Work and Pensions (DWP) and reviewing relevant documentation, we understand the following:

  • The estate is primarily responsible to pay for the funeral expenses.  In Common Law, the funeral bill has the highest priority of all debts except for secured loans.
  • The claim for the funeral bill will be on the next of kin or the person who is invoiced by the funeral director.  If the estate was short of funds, the invoiced party will be held liable to pay.  In such a scenario, a person who is a claimant of means-tested benefits and tax credits may be eligible for a contribution to funeral expenses from the Social Fund.

If the funeral director hasn’t been paid, the Social Fund will directly pay the funeral director. If the funeral director has been paid, the money will be paid to the relative who is eligible for means-tested benefits. If the Social Fund paid the invoiced next of kin in his account, since he is the beneficiary of the payment, he will become the owner of the funds. Furthermore, the payment is of a philanthropic nature. Thus, it is a gesture of good-will from the Fund to the next of kin.  Therefore, the payment will belong solely to the beneficiary and is not part of the estate.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam,

www.darulfiqh.com

DISCLAIMER:

The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.
Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.
The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.

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