Is there any form of debt which can be offset from the estate of a deceased person in order to prevent the deduction of the "value of the estate" from the amount of any potential Funeral Payment award?. It seems, from what I have read in Rowland (commentary to s.78, S.S. Administration Act '92), and Mesher (commentary to S.F.M&F.E. (General) Regs 2005), that Funeral Payments are treated as Funeral Expenses, and so have priority in terms of being able to be deducted from the estate before any other debts. Is there any argument, or any possibility, of trying to circumvent this approach?.

you'd need a probate person, but my recollection (which isn't worth a huge amount) is not.... the funeral payments are a charge on the estate. you need to be reading wills & probate!

I'm afraid not. You’ll find the answer here

http://www.communitylegaladvice.org.uk/en/legalhelp/leaflet10_13.jsp

All debts of the estate are deductible in valuing it: however the funeral expenses take priority over all others. Thus, if there is only £1200 in the estate, and £31,000 of debts, and the funeral costs £1200, all the other creditors can whistle.
So, if the DWP pays some or all of the funeral expenses effectively as an agent on behalf of the estate, it has the right to recoup that payment by a sort of subrogation. Exactly the same would apply in the normal administration of an estate where no funds are available until probate is granted, so one of the family members pays for the funeral: they would be entitled to be repaid in priority to all other creditors. That is so even if they did not benefit under the will or intestacy.

Thank-you all for your clear answers. I will act on this information, regards,


John.