Friday 16 April 2010

Bereavement lump sum payment and Bereavement Allowance

When the death of a spouse happens, thinking about money is the last thing we want to do. But funeral costs can vary from one funeral director to another and can end up being quite expensive. This is where the Bereavement payment can help. If your husband, wife or civil partner has died you may be able to get Bereavement Payment, a one-off, lump-sum payment of £2,000 that's tax-free. This is payable if you were under State Pension Age (60 for women and 65 for men) when they died. However the payment must be claimed within 12 months of date of death or is lost.

The Bereavement Allowance is a taxable weekly benefit paid to you for up to 52 weeks from the date of death of your husband, wife or civil partner. Claims can only be backdated three months for Bereavement Allowance and this starts from date the office gets them.