One child arranges and pays for the funeral, the others do not chip in – “it will come out of the estate”, “I don't have the money right now”, or simply silence. In the weeks of grief this is one of the most common family grievances, and it is also a legal question: does the one who paid get the money back from the estate? The short answer: the law is on their side – the cost of the funeral heads the list of estate debts. The longer answer is about how much procedure, time and family tension lies between “due on paper” and “actually received” – and why properly arranged funeral insurance prevents this.
- Under Section 7:94(1)(a) of the Hungarian Civil Code (Ptk.), the cost of a fitting burial of the deceased is an estate debt – and the first in the order of satisfaction, ahead of all other debts.
- Whoever paid for the funeral can register their claim as an estate creditor in the probate proceedings; an acknowledged claim appears in the estate transfer order, while a disputed claim belongs before a court (Hetv., the Probate Proceedings Act).
- Due on paper, harder to collect: with an empty estate there is nothing to pay from, costs beyond a “fitting” level cannot be claimed, and a dispute between siblings eats up time and relationships. Funeral insurance can prevent this dispute.
The cost of the funeral: an estate debt ranking first
Section 7:94(1) of the Hungarian Civil Code (Ptk.) lists the estate debts, and first on the list are the costs of a fitting burial of the deceased – followed by the costs of the estate and of the proceedings, the deceased's debts, the compulsory share, and finally legacies and testamentary charges. Under Section 7:95 of the Civil Code, if the estate is not sufficient to cover the debts, they must be satisfied in this order: the cost of the funeral therefore takes priority over a bank loan, utility arrears and relatives' claims. Section 6 of Act XXXVIII of 2010 on Probate Proceedings (Hetv.) names the same item as an “estate transfer charge” (hagyatékátadási teher). Watch out for two limits. The word “fitting” is not a decorative adjective: according to case law, what is due is the customary cost, measured against the deceased's circumstances and local custom – for exceptional expenditure that is disproportionate to the size of the estate, the part above that level remains the payer's own. And the right exists against the estate: if the estate is empty, statutory priority does not create money.
How can it be enforced in the probate proceedings?
Under the concepts of the Hetv., the person who paid for the funeral is an estate creditor: someone who registers a claim for payment of an estate transfer charge in the proceedings. The practical order: collect the invoices – funeral service provider, grave site, accessories, ceremony, and the funeral reception to a reasonable extent – and register the claim with the notary conducting the probate proceedings, preferably before the probate hearing; the first step of the proceedings is the estate inventory drawn up by the town clerk (jegyző), and you can already indicate there that you will have a creditor's claim. If the heirs acknowledge the claim, it appears in the estate transfer order and can be satisfied from the estate. If they dispute it – the amount, the “fitting” level or who paid – under the Hetv. this is a secondary inheritance dispute: the notary does not decide such matters, and the claim can be enforced before a court. If the proceedings have already been closed, the claim lies against the heirs: under Section 7:96 of the Civil Code, the heir is liable for the estate debts with the assets of the estate and their proceeds, and if these are no longer in the heir's possession, with their other assets up to the value of the inheritance. A list of the documents you need is given in the article on the death certificate and other documents.
And if you are an heir too? Settling accounts between siblings
In the typical situation, the child who paid is also an heir. In that case, deducting the funeral costs from the estate means that their claim is met first and the rest is shared – so the siblings are not “giving” them anything; the estate simply settles the joint obligation first. If the estate is small or non-existent, the situation is harder: under Section 20 of Act XLIII of 1999 on Cemeteries and Burials, close relatives are obliged to arrange the funeral in the order of intestate succession – siblings are in the same position – but the law gives no formula for dividing the cost between them. In practice what remains is a settlement, an agreement before the notary or, as a last resort, a lawsuit, which typically costs the family more than the disputed amount. How money disputes around bereavement tend to unfold, and what can be discussed in advance, is covered in the articles if there is a dispute in the family and sharing the burden in the family.
Why does funeral insurance prevent this?
Funeral insurance pays the beneficiary a fixed amount after the claim has been reported and the required documents have been received – not at the end of the probate proceedings. The amount payable to the beneficiary is typically not part of the estate, so there is no need to go to a notary for it, the siblings' acknowledgement is not required, and it does not depend on how much is left in the deceased's account. If the policyholder is the child who is expected to arrange the funeral, and they are also the beneficiary, the circle closes: whoever pays receives the funds. This does not resolve every family tension, but it takes one of the most painful disputes – who paid for the farewell and who did not – off the agenda. The payout process and the rules on nominating a beneficiary are covered in the article who receives the money.
What should you do now if you are already in this situation?
Three practical steps. Put all the funeral invoices and the receipts proving payment in one folder, preferably with the invoices made out in your name. Tell the town clerk drawing up the estate inventory, and then the notary, that you are registering a claim as an estate creditor – do not wait for the estate transfer order. And talk to your siblings before the matter comes before the notary: an acknowledged claim goes into the order, a disputed claim goes to court. I do not give legal advice; in an individual case, a lawyer or a notary is the competent person to consult. What I can offer as a broker concerns the next farewell: if there is still someone in the family who will need to be taken care of, funeral cover and a well-chosen beneficiary can make this article unnecessary in the future.
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Sources
- Hungarian Civil Code (Ptk.) Section 7:94 – estate debts (the costs of a fitting burial of the deceased), Section 7:95 – order of satisfaction, Section 7:96 – the heir's liability for estate debts
- Act XXXVIII of 2010 on Probate Proceedings (Hetv.) – Section 6(1) b) estate transfer charge, e) estate creditor, j) secondary inheritance dispute
- Act XLIII of 1999 on Cemeteries and Burials – Section 20, order of persons obliged to arrange the funeral
