“Do I have to pay for my father's funeral?” “Whose responsibility is the funeral if the siblings say nothing?” – online forums are full of these questions, and behind them there is often not indifference but a tight budget, an estranged relationship or simply the fact that nobody explained what the law says. Yet the Act on Cemeteries and Burials sets out a precise order, and the social welfare act also settles what happens if this order breaks down. This article presents the rules – and why this question is the real “why” of funeral insurance.
- Under Section 20 of Act XLIII of 1999, the following are obliged, in this order, to arrange the funeral: whoever undertook it in a contract, whoever is obliged by the will, the spouse or partner who lived with the deceased, and finally the close relatives in the order of intestate succession – so the child is part of the sequence.
- If there is no one obliged, or they do not fulfil their obligation, the local authority orders a public funeral – under Section 48 of the Szoctv. (the Social Administration and Social Benefits Act), it can register the cost as a charge on the estate or reclaim it from the person obliged to arrange the burial.
- Disclaiming the inheritance does not in itself release anyone from the obligation to arrange the funeral; a waiver on equity grounds can be granted under the local authority's decree – properly arranged funeral cover can prevent this situation.
The statutory order: who is obliged to arrange the funeral?
Under Section 20(1) of Act XLIII of 1999 on Cemeteries and Burials, the following are obliged, in this order, to arrange the funeral: whoever undertook the funeral in a contract; whoever is obliged to do so by the deceased's will; in the absence of a testamentary disposition, the spouse or partner who lived with the deceased before their death; and finally the deceased's other close relatives in the order of intestate succession. A child therefore does not become obliged through some separate procedure – they are simply part of the sequence, typically directly after the spouse or partner, in the same position as their siblings. In practice, “arranging” the funeral also means ordering it and bearing its cost; how much of this can be recovered from the estate is covered in a later section. Under Section 19(2) of the Act, the method and place of burial are governed by the instructions the deceased gave during their lifetime, provided that this does not place a disproportionately heavy burden on the person arranging the burial – in other words, the person obliged is not required to organise a farewell beyond their own means.
If nobody takes it on: the public funeral
Section 20 of the Act also states that if there is no person obliged to arrange the funeral, their whereabouts are unknown, or they do not fulfil their obligation, the funeral is arranged by the mayor of the local municipality competent for the place of death. This is the public funeral (köztemetés), whose detailed rules are laid down in Section 48 of Act III of 1993 on Social Administration and Social Benefits (Szoctv.). The public funeral is ordered by the local authority of the place of death, and its cost is borne by the local authority of the deceased's last place of residence – and here is the key point: the local authority either registers the cost with the notary as a charge on the estate, or obliges the person required to arrange the burial to reimburse the costs of the public funeral. A public funeral is therefore not a “free funeral” but a modest ceremony ordered by the local authority, the bill for which can later be presented to whoever is in the statutory sequence. Under the Szoctv., the local authority may, in the manner set out in its own decree and in circumstances deserving special consideration, release the person obliged from reimbursement in part or in full – but this is a matter of application and discretion, not an automatic entitlement. What means-tested support exists for funerals is explained in the article on funeral assistance.
A disclaimed inheritance, a parent in debt: does it release you?
A common assumption is that anyone who disclaims the inheritance is not burdened with the funeral either. Under the inheritance rules of the Hungarian Civil Code (Ptk.), an heir can indeed disclaim the inheritance and is then not liable for the estate debts either – but the obligation to arrange the funeral arises not from inheritance but from the Burials Act, on the basis of the family relationship. Disclaiming the inheritance therefore does not in itself end the obligation under the Burials Act, and an order to reimburse the cost of a public funeral may also reach someone who is in the statutory sequence. The other direction does work, however: if there is an estate, the cost of a fitting burial of the deceased is an estate debt under Section 7:94 of the Civil Code – and it comes at the top of the order of satisfaction: whoever paid for the funeral takes priority over the other creditors of the estate. How this can be enforced in practice, and what it means for an estate burdened with debt, is covered in the article on funeral insurance and the estate.
Where does funeral insurance fit into this?
Funeral insurance does not override the statutory order; it provides funds to the person who is in the sequence. The benefit is payable to the named beneficiary as a fixed amount, and the sum insured payable to the beneficiary is typically not part of the estate – so it does not depend on how long the probate proceedings take, on disputes between the heirs, or on whether anyone can access the deceased's account. In a tense family situation this has practical significance: if the adult child pays the premium as policyholder and is the beneficiary, the money goes to the person who actually arranges and pays for the funeral. If several people share the burden, the nomination can reflect that too. How this can be settled fairly within the family is discussed in the article on sharing the burden in the family; the rules on nominating a beneficiary are explained in the article who receives the money.
What should you do if this situation looms?
If there is a relative in your family whose funeral is likely to fall to you, and you cannot or do not want to bear it alone, I suggest three steps. First, talk to your siblings and the others who are obliged – the law gives no formula for settling accounts between them, and an agreement is the least hard on the family and on everyone's finances. Second, find out from the local authority's social affairs office about the local rules on public funerals and waivers on equity grounds before the procedure starts, not afterwards. Third, if there is time, look together at whether funeral insurance taken out on a parent would resolve the question – this is worth discussing honestly, without promises about premium figures. I do not give legal advice; in an individual case, a lawyer or the legal aid service of the government offices (kormányhivatal) is the competent place to turn. What I can offer as a broker: properly arranged funeral cover can prevent precisely the dispute this article has been about.
Do you have a question about your own family's situation? Let’s talk it through, calmly – 20 minutes, free of charge →
Sources
- Act XLIII of 1999 on Cemeteries and Burials – Section 19(2) (method and place of burial: the deceased's instructions), Section 20 (order of persons obliged to arrange the funeral, public funeral)
- Act III of 1993 on Social Administration and Social Benefits (Szoctv.) – Section 48, public funeral: ordering, bearing the costs, recovery, waiver on equity grounds
- Hungarian Civil Code (Ptk.) Section 7:94 – estate debts (the costs of a fitting burial of the deceased rank first); inheritance-law rules on disclaiming an inheritance
- Act XXXVIII of 2010 on Probate Proceedings (Hetv.) – Section 6, estate transfer charge, estate creditor
