life insurance and capital

Client was the beneficiary of a life insurance policy which paid out when his mother died. His mother (who had taken out and paid into the policy) had instructed him that he was to pay for her funeral out of the payout from the life insurance. If his mum had bequeathed him the money but with instructions that he was to pay for her funeral out of it there would be purposive trust arguments etc. Is there anything similar which can apply in the case of a life insurance payout?

Did his mother leave an estate? If so the funeral costs are the first charge on it, usually expressly in a will, or on intestacy as a matter of law. This principle would make it hard to argue that he is to be personally liable for the funeral costs. Though of course if he arranged the funeral he is contractually liable to pay for it.
If it gets to a question of deprivation of capital, I can hardly see that burying his mother could be construed this way. Is there a problem or are you just being cautious/paranoid???

He dragged his feet about paying for the funeral. He thought his situation was the same as a mate of his who was left money, paid funeral etc and had no problems. I think he’ll be okay on the deprivation issue although he is still waiting for a decision but I think hes stuck with it being assessable capital before that.