Funeral Debt Collection: Your Rights When a Funeral Bill Goes Unpaid

A funeral bill is normally a debt of the person's estate, not of their family. The FTC says family members usually don't have to pay a dead relative's debts from their own money, with exceptions such as a contract you signed yourself. If a collector calls, it may discuss the debt only with certain people, such as a spouse or the executor, and you can ask for written proof of the debt and tell it to stop contacting you.

This guide covers US law. It is general information, not legal advice, and a lawyer can tell you how your state treats a particular bill.

Who owes a funeral bill?

The FTC says a person's debts don't go away when they die. They are owed by and paid from the estate. If the estate has too little money, the debt usually goes unpaid.

The FTC lists situations where you might be personally responsible for a debt:

• You cosigned the obligation.
• You are the surviving spouse and live in a community property state, such as California, or a state that requires you to pay certain debts.
• You were the person legally responsible for the estate and didn't follow state probate rules.

For funeral bills there is one more route that matters more than any of these: the contract. Under the FTC Funeral Rule, the funeral home must give you an itemized statement of what you chose, with prices and the total. If you sign the funeral home's agreement, the home will look to you for payment whether or not the estate has money yet. Our guide on who pays for a funeral explains this in more detail.

State law matters too. California, for example, says funeral expenses are charged against the estate and not against the surviving spouse's community property share, whether or not the spouse or anyone else is also liable. Rules differ elsewhere, so ask a probate lawyer if a spouse is involved.

Who can a debt collector talk to?

The FTC says that under the Fair Debt Collection Practices Act (FDCPA), a collector can discuss a dead person's debt only with their:

• spouse
• parents, if the person who died was a minor
• legal guardian
• lawyer
• executor, administrator or personal representative with power to pay debts from the estate
• confirmed successor in interest, which applies to certain mortgage debts

A collector may not discuss the debt with anyone else. It can contact other relatives or people connected to the person to get the name, address and phone number of the spouse or the executor, but the FTC says it can usually do so only once, and it can't discuss the details of the debt.

If you are in one of the groups above, you also have the usual protections. A collector can't contact you before 8 a.m. or after 9 p.m., can't contact you at work if you say that isn't allowed, can't email or text if you ask it to stop, and can't call more than seven times within seven days, or within seven days after talking with you by phone about the debt.

Does the law cover the funeral home?

Often not directly. The FDCPA defines a "debt collector" as a business whose main purpose is collecting debts, or one that regularly collects debts owed to someone else. It excludes an officer or employee of a creditor who collects debts for the creditor in the creditor's name. So the law usually covers a collection agency that has taken over the bill, but a funeral home chasing its own invoice may fall outside it.

That doesn't mean it can do whatever it likes. The FTC says many states have their own debt collection laws, which differ from the federal law, and some cover original creditors. California's Rosenthal Act, for instance, defines a debt collector as someone who regularly collects debts on their own behalf or for others. Your state attorney general's office can tell you what applies where you live.

What should you do when a collector contacts you?

1. Don't agree to pay or "take responsibility" on the phone. Unless you signed the contract or are legally responsible, you are not the debtor.
2. Say who you are. If you are not the spouse or executor, you can say you aren't authorized to discuss the debt, and give the executor's name if you know it. The collector may ask for it once.
3. Ask for validation in writing. The FTC says a collector must give you information about the debt, including the amount and the creditor, during its first call or in writing within five days.
4. Dispute in writing within 30 days. If you don't think the debt is yours or is wrong, the FTC says to send a dispute letter within 30 days of getting validation information. The collector must then stop collecting until it sends written verification.
5. Keep records. Note the date, name and what was said. Keep every letter. Send letters by certified mail with a return receipt.
6. Don't make a "goodwill" payment before you check the time limit. The FTC says that in some states a payment, or even a written acknowledgment of the debt, can restart the statute of limitations and make an old debt collectable again.

What if you signed the funeral contract?

Then the funeral home has a claim against you personally, and the "family doesn't owe it" rule doesn't help. You still have options:

• Talk to the funeral home first. The Funeral Consumers Alliance says most funeral homes expect payment in full up front, but you can sometimes negotiate an installment plan. It also says you could ask whether the home will defer some charges until probate is complete.
• Claim repayment from the estate. If the estate has money, the executor can reimburse you, and funeral costs usually rank high among the estate's debts. Keep every receipt. See paying for a funeral before probate.
• Be careful about borrowing. The Funeral Consumers Alliance advises against taking out a loan for a funeral except as a last resort.

If you can't pay, get legal advice before ignoring a lawsuit. A court judgment against you is a much bigger problem than a collection letter.

What should an executor do about funeral debt?

If you are the executor or administrator, you can pay the bill from estate assets, and you don't need to use your own money. You generally need legal authority from the court first. Our guide on what an executor does explains the role.

State law sets the order in which an estate pays debts, and funeral expenses usually rank high:

If the estate can't pay everything, be careful. Federal law gives government claims priority when an estate is too small to pay all its debts, and says a representative who pays other debts before a government claim is liable, to the extent of the payment, for unpaid government claims (31 U.S.C. 3713). Speak to a probate lawyer before you pay anyone in an estate that may be insolvent.

What if there is no money for the funeral?

Plan around the bill. The Funeral Consumers Alliance says many states offer burial assistance for people who were receiving Medicaid, SSI or disability benefits when they died, and suggests asking your local Department of Social Services. It also lists charities, faith groups, unions, employer benefits, victim compensation programs and, depending on your situation, fundraising. Our guides on what to do if you can't afford a funeral, government funeral help and crowdfunding a funeral cover each in turn.

Direct cremation and immediate burial cost far less than a full service. Under the FTC Funeral Rule, you can choose them, you can buy a casket or urn elsewhere without a fee from the funeral home, and you don't have to accept a package.

How do you avoid a funeral bill you can't pay?

• Get prices before you visit. The FTC says funeral directors must give you prices by phone if you ask, and a written General Price List when you visit. See our General Price List guide.
• Decide how it will be paid before you sign. Our guide to funeral payment upfront explains what homes expect.
• Choose only what you want. You can buy goods and services separately.
• Compare homes. Our guide to negotiating funeral prices shows how.

Where do you report an abusive collector?

Report problems to the FTC at ReportFraud.ftc.gov and to your state attorney general. The Consumer Financial Protection Bureau also takes complaints about debt collectors. Many states have their own rules.

For a broader look at what happens to debts after a death, see our guide to debt when someone dies.

What to do next

1. Find out who signed the funeral contract and whether the bill is in the estate's name or yours.
2. Ask the collector for written validation, and answer in writing.
3. Tell the executor, if there is one, about the bill and give them the paperwork.
4. If you may be personally liable, or there is a lawsuit, talk to a lawyer. Legal aid may help if your income is low.