Burns died on October 23 after suffering a "massive cardiac arrest". He was 57.
"It is very sad, but Pete died absolutely penniless and there is no money for a funeral. At one point Lynne and Michael were discussing with Pete's friends setting up a crowdfunding page to pay for it. But people were not happy about that as they thought it would be undignified for Pete," a source said.
George kindly stepped in when he heard Burns' ex-wife Lynne Corlett and husband Michael Simpson were considering setting up a page to allow fans to contribute to the costs of having him laid to rest, reported Female First.
"He thinks she and Michael have enough on their plates and wanted to take this concern away from them. It is a very generous gesture. As soon as he heard there was a problem he did not hesitate to sort it out. He was devastated by the news and Pete was a great friend of his."
A date and venue for the funeral have not yet been set, but it is likely to take place in London in the coming weeks, with a wake at the private Groucho Club in the city.
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