Paying Funeral Costs from an Estate in the ACT (+ Funeral Assistance Program)

The cost of a funeral often arrives before any estate funds are accessible. Bank accounts are frozen. The Grant of Probate is weeks away. Yet the funeral director needs payment before or shortly after the service. For many ACT families, the immediate question is: how do we pay for this?

Funeral costs as the highest-priority estate debt

The law is clear on one point that provides some reassurance: funeral and testamentary expenses are the highest-priority debt of a deceased estate. They must be paid before any other creditor, before any beneficiary receives their share, and before any other obligation.

This priority status means two things in practice:

1. The executor is entitled to be reimbursed from estate funds for any funeral costs paid personally
2. Banks in the ACT will generally release funds directly to pay funeral invoices, even before probate is obtained

Most major banks — Commonwealth Bank, Westpac, ANZ, NAB — have specific policies allowing them to pay funeral invoices directly from a deceased's account upon presentation of the invoice and death certificate. You don't need probate for this. Contact the bank's bereavement line, provide the funeral director's invoice and the death certificate, and request direct payment. This is the fastest path for most families.

The ACT Funeral Assistance Program

For families with limited financial means, the ACT government provides the Funeral Assistance Program — a targeted financial support scheme for eligible Canberra residents.

What it provides: Up to $500 toward the cost of a basic, dignified funeral.

Who qualifies: The program is means-tested. The applicant — usually the person arranging the funeral — must demonstrate financial hardship through a financial assessment of their income and assets conducted by the contracted funeral director at the time of application.

How to access it: You cannot apply independently. The application is made through contracted funeral directors who participate in the program. When you contact a funeral home about the service, ask whether they are contracted for the ACT Funeral Assistance Program and whether your circumstances might qualify.

Aboriginal and Torres Strait Islander families: The program specifically accommodates the cost of transporting the deceased back to homelands for burial — an important inclusion that standard commercial funeral plans often exclude. If transportation back to Country is needed, confirm this is addressed when applying through the funeral director.

Veterans: Families of veterans should also contact the Department of Veterans' Affairs (DVA) to ask about potential funeral benefits and bereavement payments, which are separate from the ACT state scheme.

How funeral directors in the ACT operate

Funeral directors in the ACT are private businesses — there is no government-run funeral service. The Canberra market includes both independent funeral homes and national chains. Cemeteries and crematoria are managed by the Cemeteries and Crematoria Authority of the ACT.

When you engage a funeral director, they register the death with Access Canberra Births, Deaths and Marriages within seven days (this is their obligation, and it's free). This registration triggers your ability to apply for the official Death Certificate, which takes up to 15 business days to process.

For cremation, an additional step is required: the Cemeteries and Crematoria Authority must appoint a Medical Referee who independently reviews the death documentation and authorises the cremation via a specific permit. Do not schedule the cremation service date until this permit is confirmed — unexpected delays are possible if there are coronial questions about the cause of death.

What to do when you can't cover funeral costs upfront

If the family cannot pay the funeral director upfront and the bank won't immediately release funds, there are several options:

Funeral finance: Many funeral directors offer payment plans or have arrangements with finance providers. Interest rates vary — compare carefully.

Federal Banking Act release: Under Section 69B of the federal Banking Act, banks can release up to $15,000 from a deceased person's account for estate expenses (including funerals) without probate. This is a specific pathway worth knowing — not all bank staff will volunteer this information, so ask directly.

Credit card: Some families use a credit card and immediately seek reimbursement from the estate once bank access is sorted. The credit card interest for a few weeks is typically far less than the cost of financing the funeral separately.

Centrelink bereavement payment: If the deceased received Centrelink payments, survivors may be entitled to a lump-sum bereavement payment. Contact Centrelink promptly — they also need to be notified to stop the deceased's payments.

Reimbursing the executor

If you paid funeral costs from personal funds, keep every receipt. When estate funds become accessible, you are entitled to full reimbursement of funeral and testamentary expenses before any beneficiary receives anything. Document the payments clearly in the estate accounts.

The ACT Estate Settlement Guide covers the full sequence of funding a funeral from an estate, bank payment requests, and the ACT Funeral Assistance Program application process in detail.

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