Q & A Q & A

Q. My father passed away a couple of months ago, and his funeral cost my mother around $12,000. She wants to ensure she does not leave us with a funeral bill to pay when she passes on. How can she have peace of mind that this burden is not passed onto us?

A. She has a few options that should provide her peace of mind She could either prepay for the cost of her funeral and in this way, she would choose how she would like her funeral to be Another option would be for her to invest in a Funeral Bond, which would provide her with a policy document and then inform you about this so you could access the policy document to pay for the funeral A third option is to ensure she has sufficient funds in her bank account Banks allow the person organising the funeral to access the funds to pay for it after the account holder dies Discuss this with her, and she can select her preference

Q. My husband and I are still both working and in our 60s. We have three children, all of whom are married. Our youngest child has some financial difficulties as he has lost his job, and his wife does not work as they have a young child. We are happy to gift him $50,000 to help him pay his ongoing mortgage until he finds work again. Is this a good way, or will it cause friction with my other two children?

A. A While you are alive, you can do whatever you wish with your money and helping your children is commendable However, to alleviate friction, you could let the other two children know what you are doing and tell them that this would be part of his inheritance unless he can repay you this amount You could do this through a deed of agreement or a letter confirming the gift and something in the Will to allow him to pay it back in part or whole Your other children should be able to understand his current situation

This document contains factual information only It is not intended to provide any recommendation or opinion in relation to the topic/s discussed Fiducian recommends that you seek advice from a professional to address any issues that may be raised by this article Fiducian accepts no liability for any loss suffered by anyone who has acted on any information in this document