Money matters need to be faced in the event of the death of a loved one, writes Laura Slattery.

Money matters will be far down the list of people's concerns following the death of a family member or loved one, but a bereavement can nevertheless give rise to a number of financial and legal issues at a difficult and stressful time.

As well as looking after immediate expenses such as funeral costs, people who have been recently bereaved may also need to check what social welfare payments they are entitled to, if they can access money held in joint bank accounts, and if the deceased person's estate was in order.

Registering the death

If the death occurs in hospital, the hospital usually registers the death, but if it occurs at home, the next of kin or nearest relative present must bring a medical certificate of cause of death to the Registrar of Births, Death and Marriages for the area where the death took place.

You can obtain a death certificate from the local registrar for a fee of €6.98. If death certificates are needed in order to claim certain social welfare payments, the cost is 89 cents.

Funeral costs

Members of the Irish Association of Funeral Directors are required by its code of practice to discuss funeral costs when the arrangements are being made, unless the person responsible for making the arrangements indicates that they would prefer not to discuss costs at that time.

Funeral charges vary quite a bit. The costs can be broken down into two categories: charges by the funeral director and disbursements

Charges by the funeral director will cover the coffin, removal, hearse and bearers, any other transport, embalming and professional fees. According to Fanagans Funeral Directors, these charges could range from €1,175 to €4,500, depending on the coffin selected and range of other services required.

Disbursements are payments made by the funeral director to third parties for services such as grave purchase, grave opening, cremation fees, newspaper announcements, flowers, fees to an organist or soloist, offerings to the church and, in some instances, catering.

Last year, the average range for these costs was €1,150-€2,350, according to Fanagans.

Combining the two types of charges, the average cost of a traditional funeral could range from €1,975 to €4,500.

Bereavement grant

To help cover funeral costs, a bereavement grant of €635 is payable on the death of insured workers or their dependants, subject to PRSI contribution conditions. The next of kin should apply for the grant within 12 months of the date of death.

Only one bereavement grant is payable on a death.

Widows and widowers with dependent children are also entitled to a once-off Widowed Parent Grant. The grant currently stands at €2,500.

Wills and probate

If there is a will, the person named in the will as the executor needs to take out probate, which means asking the Probate Office to certify that the will is valid and that all legal and tax matters are in order so that the estate can be distributed among the named beneficiaries.

If there is no will or no executors are named or willing to act, an administrator must be appointed. This person is usually the next of kin.

If you are appointed an executor of a will, it is a good idea to secure professional legal advice or instruct a solicitor to handle the estate.

Any debts must be paid out of the estate first, with those concerning the funeral, administration of the estate and the will taking priority.

Joint bank accounts

Widows and widowers can automatically draw money they held with their deceased spouse in a joint bank account.

But if you held a joint bank account with a person other than your spouse, for example a brother or sister, parent or partner, you may need to check first with your bank or building society.

They may require a statement from the Revenue Commissioners which will allow you to use or transfer the money while any possible liability to inheritance tax is being checked out.

If money in a bank or building society account is in the deceased's name only, then in most cases it may not be accessed until probate is taken out.

If the amount of money is small, however, the bank or building society may release it on condition that you sign an indemnity form that protects them from any loss in the event the money is claimed by someone else.

Welfare entitlements

If your spouse or partner was in receipt of certain social welfare payments at the time of his or her death, including State pensions and unemployment benefit or assistance, the same rate of payment will continue for six weeks.

The six-week payment is normally paid in a lump sum by cheque.

To apply for this money, contact the section of the Department of Social and Family Affairs that issues the payment as soon as possible after the death.

Widows and widowers may be entitled to a Widow's or Widower's Contributory Pension. This pension cannot be paid if the surviving spouse remarries or cohabits.

If you are widowed with dependent children and you do not qualify for this pension, you may qualify for the One-Parent Family Payment instead.

Tax in the year of death

The full-year tax credits to which the deceased person is entitled is offset against his or her income in the year that he or she died.

This means that an income tax refund may be due after the person dies.

The tax treatment of jointly assessed married couples in the year of death depends on whether the deceased person was the assessable or non-assessable spouse.

Widowed parents may receive a tax credit that decreases every year for the five years after the death. The credit in the year of death is currently €2,600. This credit is reduced every year by €500.

Inheritance tax

Spouses are not liable to inheritance tax, which is charged at a rate of 20 per cent. Children can receive up to €441,198 in gifts or inheritances before they are liable, while other relatives can receive up to €44,120 before they must pay the tax.

Cohabitees, distant relatives and non-relatives can only receive up to €22,060 before they are liable for inheritance tax. The family home is exempt from gift or inheritance tax in certain circumstances.

Further information: Contact the Citizens Information Call Centre on lo-call 1890 777 121. Information is also available online at www.welfare.ie and www.oasis.gov.ie.

A booklet on bereavement is also available from Comhairle, the national agency responsible for the provision of information to the public on social services.