Funeral provisions not tax-deductible (FG Münster 10 K 1483/24)

Oct 30, 2025

Expenses that a taxpayer cannot avoid for legal, factual or moral reasons constitute an extraordinary burden for income tax purposes, provided that they are necessary under the circumstances and reasonable in amount. If the taxpayer submits a corresponding application for consideration in the course of their income tax return, expenses are to be taken into account for tax reduction purposes insofar as they exceed what is reasonable for the taxpayer and are inevitably higher than for the vast majority of other comparable taxpayers.

In this context, the Münster Finance Court (FG) had to decide whether a taxpayer could claim the expenses for his own funeral provision trust agreement as an extraordinary burden.

The taxpayer was of the opinion that tax relief should be possible, as the assumption of funeral costs by the heirs at a later date after his death could lead to these costs being recognised as extraordinary expenses, meaning that there should be no obstacle to early recognition.

Both the tax office and the FG took a different view and, after unsuccessful appeal proceedings, dismissed the action brought against this decision.

The FG ruled that the plaintiff was not obliged to pay for his own funeral in advance. The expenses were not mandatory, but voluntary. Rather, the heirs were obliged to pay the costs after the plaintiff's death, primarily from the estate. Tax consideration in the context of income taxation as an extraordinary burden was therefore also subordinate for the heirs. There was also no moral obligation to cover one's own funeral costs; this could only be assumed towards third parties.

Since the necessity of being buried and bearing the costs applies to every taxpayer and every heir, the plaintiff did not incur any necessarily greater expenses than the vast majority of taxpayers.

Source: FG Münster, judgment of 23 June 2025 – Ref. 10 K 1483/24 E