Dying: What Is The Cost To Those Left Behind?

What does it cost to die?

This sounds like a silly question, or at least, an obvious one. But dying does have a financial cost, and if that cost is overlooked in an estate plan, it can lead to beneficiaries not getting whatever it is that you intended for them to receive, or else, it can even lead to your loved ones going into debt, to account for the expenses of passing away.

Study Looks at the Cost of Dying

According to a study conducted by empathy.com, death has not just a financial cost, but one that is measured in time as well. The average amount of time it took for relatives or others to wrap up the administration of someone’s affairs after they pass away, was between 12 and 15 months (a little longer if the person doing the wrapping up was an executor of an estate).

While this is going on, loved ones, who are having to manage a deceased’s affairs or estate, are suffering physical or mental trauma or distress. Loved ones reported that 94% of them had some kind of physical or mental symptom related to the administration of a deceased’s affairs.

The age group most affected by a loss of quality of life during this period were younger survivors, between the ages of 18 and 44.

Going to Work

While this is all going on, loved ones are expected to work their normal, daily job. But that isn’t easy. For between 10 and 19 months (again, depending on whether someone was an executor of an estate), the stress, trauma and symptoms of loss, affected survivors’ ability to work and do their jobs.

Some companies have tried to help, but what is offered is usually far less than what is needed. Over 60% of companies said they had some kind of loss bereavement policy for workers suffering a death, but of those companies, the average time off offered to those suffering a loss, was between 5-6 days.

The Expenses

The average cost of all expenses related to passing away, was just over $12,000, with the average funeral (included in that figure) being about $6,000. However, other studies have found that number to be over $8,000 just for a funeral, and the number can vary per state (California, at $7,800, was about in the middle of the national range of funeral costs).

By some estimates, it can cost way more than $12,000. It can actually cost a total of $20,000 when someone passes away—and that doesn’t include healthcare costs for the survivors, or lost wages for the survivors.

That figure does include things like legal fees associated with selling or liquidating assets, or on miscellaneous legal matters, or on costs associated with holding or maintaining real estate or the deceased’s business.

And while you can and should account for these expenses in your estate plan, many do not. As a result, about 42% of those surveyed reported using their own personal money or assets, to pay for many of these expenses.

A good estate plan now can help your loved ones later on. Call the Torrance probate will and estate attorneys at Samuel Ford Law today.

Sources:

usatoday.com/money/blueprint/life-insurance/how-much-does-a-funeral-cost/

forbes.com/sites/debgordon/2023/01/31/dying-can-cost-loved-ones-20000-before-lost-wages-and-worse-health-new-report-says/